Business
Business, 05.05.2020 16:46, scottbrandon653

World Company expects to operate at 80% of its productive capacity of 61,250 units per month. At this planned level, the company expects to use 29,400 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate based on direct labor hours. At the 80% capacity level, the total budgeted cost includes $47,040 fixed overhead cost and $355,740 variable overhead cost. In the current month, the company incurred $390,000 actual overhead and 26,400 actual labor hours while producing 46,000 units.
Compute the overhead volume variance.

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World Company expects to operate at 80% of its productive capacity of 61,250 units per month. At thi...

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