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October 25, 2014

Homework Help: Accounting

Posted by Leslie on Tuesday, October 18, 2011 at 12:22am.

Original budget for 2009 included $600,000 fixed overhead and $400,000 variable overhead. Labor hours were estimated at 200,000 labor hours. The predetermined overhead rate was $5 per hour.

Actual overhead turned out to be $1,100,000. Actual labor hours were 220,000 which exceeded the standard hours of 210,000 for that volumen activity.

What is the volume variance for overhead?

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