Compute the manufacturing overhead volume variance. Normal capacity was 70,000 direct labor hours. Identify whether the variance is favorable or unfavorable. Total manufacturing overhead volume variance

Managerial Accounting
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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 15E: Factory overhead cost variances The following data relate to factory overhead cost for the...
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In October, Bramble Inc reports 44,500 actual direct labor hours and incurs $234,000 of manufacturing overhead costs. Standard
hours allowed for the month's production is 45,300 hours. Bramble's predetermined overhead rate is $5.01 per direct labor hour.
The flexible manufacturing overhead budget shows that budgeted costs are $3.80 variable per direct labor hour and $84,700 fixed.
variance
Compute the manufacturing overhead volume variance. Normal capacity was 70,000 direct labor hours. Identify whether the
is favorable or unfavorable
Total manufacturing overhead volume variance
Transcribed Image Text:In October, Bramble Inc reports 44,500 actual direct labor hours and incurs $234,000 of manufacturing overhead costs. Standard hours allowed for the month's production is 45,300 hours. Bramble's predetermined overhead rate is $5.01 per direct labor hour. The flexible manufacturing overhead budget shows that budgeted costs are $3.80 variable per direct labor hour and $84,700 fixed. variance Compute the manufacturing overhead volume variance. Normal capacity was 70,000 direct labor hours. Identify whether the is favorable or unfavorable Total manufacturing overhead volume variance
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