In October, Blossom Company reports 22,000 actual direct labor hours, and it incurs $120,000 of manufacturing overhead costs. Standard hours allowed for the work done is 24,000 hours. The predetermined overhead rate is $5.10 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $3.06 variable per direct labor hour and $51,000 fixed. Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours. Overhead Volume Variance LA $

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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In October, Blossom Company reports 22,000 actual direct labor hours, and it incurs $120,000 of
manufacturing overhead costs. Standard hours allowed for the work done is 24,000 hours. The
predetermined overhead rate is $5.10 per direct labor hour. In addition, the flexible manufacturing
overhead budget shows that budgeted costs are $3.06 variable per direct labor hour and $51,000 fixed.
Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours.
Overhead Volume Variance
LA
$
Transcribed Image Text:In October, Blossom Company reports 22,000 actual direct labor hours, and it incurs $120,000 of manufacturing overhead costs. Standard hours allowed for the work done is 24,000 hours. The predetermined overhead rate is $5.10 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $3.06 variable per direct labor hour and $51,000 fixed. Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours. Overhead Volume Variance LA $
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