Question

Brief Exercise 25-11 Your answer is partially correct. Try again. In October, Pine Company reports 20,600 actual direct labor hours, and it incurs $257,000 of manufacturing overhead costs. Standard hours allowed for the work done is 25,700 hours. The predetermined overhead rate is $10.25 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $8.35 variable per direct labor hour and $51,500 fixed. Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours. Overhead Volume Variance 9095 Favorable LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts: 1 of 2 used SAVE FOR LATER SUBMIT ANSWER

Answer 1

Std Direct Labour hours	25700.00
Predetemined overhead rate	$ 10.25	per DLH
Variable manufacturing overhead	$ 8.35	per DLH
Fixed Manufacturing overhead	$ 51500.00
normal capacity in DL hours	25000.00	DLH
Actual labour hour used	$ 20600.00
Actual Manufacturing Overheads	$ 257000.00
Budgeted Overhead
Variable (20600 DLH* $ 8.35)	$            172,010.00
Fixed	$              51,500.00
Total Budgeted Manufacturing overhead	$            223,510.00
Less Actual Manufacturing overhead	$            257,000.00
Overhead Volume Variance	$ ( 33,490.00)	Unfavourable