# Accounting

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 volume activity.

What is the volume variance for overhead?

1. it is
(210000-22000)= 10000 hrs X \$5/hr =\$ 50000 ( adverse)

hamzanajam @ h o t m a i l . c o m
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posted by Sir. Hamza Najam 0092-323-4335372

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