Question: Using the data in BE22-6 and BE22-10, compute the overhead volume variance. Normal capacity was 25,000 direct labor hours. Data from BE22-10 In October, Derby

Using the data in BE22-6 and BE22-10, compute the overhead volume variance. Normal capacity was 25,000 direct labor hours.


Data from BE22-10

In October, Derby Company reports 21,000 actual direct labor hours, and it incurs $115,000 of manufacturing overhead costs. Standard hours allowed for the work done is 20,000 hours. The predetermined overhead rate is $6 per direct labor hour. Compute the total overhead variance.

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