Compute the overhead volume variance

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Question - In October, Vaughn Company reports 13.500 actual direct labor hours, and it incurs $199,200 of manufacturing overhead costs. Standard hours allowed for the work done is 24,900 hours. The predetermined overhead rate is $3.25 per direct labor hour. In addition. the ?exible manufacturing overhead budget shows that budgeted costs are $6.65 variable per direct labor hour and $55,000 ?xed. Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours.

Reference no: EM132607518

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