Exercise $21-21($Algo$)$ Volume variance LO P$4$

Shaw Company produced $720$ units. Its overhead allocation base is DLH and its standard amount per

allocation base is $8$ DLH per unit. Its standard overhead rate is $$10$ per DLH$.$ The flexible overhead budget

at an activity level of $720$ units shows $$28,000$ in variable overhead costs and $$32,000$ in fixed overhead

costs. Compute the volume variance. $($Indicate the effect of the variance by selecting favorable,

unfavorable, or no variance.$)$