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panchaga
Oct 18, 2010, 08:15 PM
A manufacturing company uses standard costing and applies overhead on the basis of direct labor hours. The company experienced the following results in August:

Standard direct labor hours allowed for actual production 9,000
Actual direct labor hours used 9,250
Predetermined overhead rate (per direct labor hour) $45
Flexible budget overhead for standard hours allowed $410,000

The overhead volume variance for the month is

rehmanvohra
Oct 20, 2010, 09:24 PM
I am sure you know the formula for calculating variances.

Here is the formula for volume variance:

(Standard hours allowed - actual hours worked) x standard overhead rate.

Plug in the figures and you have your answer.