Budgeted overhead for the Henderson Company at normal capacity (the denominator level of activity) of 30,000 direct labor hours is $6.00 per hour for variable manufacturing overhead and $4.00 per hour for fixed manufacturing overhead. In May, $310,000 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead volume variance is:

Budgeted overhead for the Henderson Company at normal capacity (the denominator level of activity) of 30,000 direct labor hours is $6.00 per hour for variable manufacturing overhead and $4.00 per hour for fixed manufacturing overhead. In May, $310,000 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead volume variance is:

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Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter16: Job Order Costing

Section: Chapter Questions

Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...

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