Solution:
Fixed Overhead application rate = $8.15 - $6.65 = $1.50 per direct labor hour
Fixed overhead applied = $1.50 *22700 = $34,050
Budgeted Fixed Overhead = $50,750
Overhead volume variance = Fixed overhead applied - Budgeted Fixed Overhead = $34,050 - $50,750 = $16,700 Unfavorable
In October, Sunland Company reports 20,400 actual direct labor hours, and it incurs $181,600 of manufacturing...
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