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?

it is

(210000-22000)= 10000 hrs X $5/hr =$ 50000 ( adverse)

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To calculate the volume variance for overhead, we need to compare the actual labor hours to the standard labor hours and then multiply the difference by the predetermined overhead rate.

Step 1: Calculate the standard overhead based on the standard labor hours:
Standard overhead = Standard labor hours * Predetermined overhead rate
Standard overhead = 210,000 labor hours * $5/hour
Standard overhead = $1,050,000

Step 2: Calculate the actual overhead:
Actual overhead = $1,100,000

Step 3: Calculate the volume variance:
Volume variance = Actual overhead - Standard overhead
Volume variance = $1,100,000 - $1,050,000
Volume variance = $50,000

Therefore, the volume variance for overhead is $50,000.