Question: A company allocates overhead costs based on machine hours. The budgeted overhead costs for the year are $150,000, and the company anticipates using 15,000 machine

A company allocates overhead costs based on machine hours. The budgeted overhead costs for the year are $150,000, and the company anticipates using 15,000 machine hours. However, actual machine hours used during the year were 14,000. Calculate the overhead volume variance and analyze its implications for cost control and capacity utilization.

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