Shaw Company produced 730 units, Its overhead allocation base is DLH and its standard amount per allocation base is 8 DLH per unit ts standard overhead rate is $10 per DLH. The fexible overhead budget at an activity level of 730 units shows $28,500 in variable overhead costs and $32.500 in fed overhead costs Compute the volume variance. Indicate the effect of the variance by selecting favorable, unfavorable, or no variance)

FINANCIAL ACCOUNTING
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Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Shaw Company produced 730 units. Its overhead allocation base is DLH and its standard amount per allocation base is 8 DLH per unt
hs standard overhead rate is $10 per DLH. The flexible overhead budget at an activity level of 730 units shows $28,500 in variable
overhead costs and $32.500 in fed overhead costs. Compute the volume variance. fIndicate the effect of the variance by selecting
favorable, unfavorable, or no variance)
Vlume Verianes
Volume vartance
Transcribed Image Text:Shaw Company produced 730 units. Its overhead allocation base is DLH and its standard amount per allocation base is 8 DLH per unt hs standard overhead rate is $10 per DLH. The flexible overhead budget at an activity level of 730 units shows $28,500 in variable overhead costs and $32.500 in fed overhead costs. Compute the volume variance. fIndicate the effect of the variance by selecting favorable, unfavorable, or no variance) Vlume Verianes Volume vartance
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