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
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