During November,Heim Company allocated overhead to products at the rate of $26.00 per direct labor hour.This figure was based on 80% of capacity or 1,600 direct labor hours.However,Heim Company operated at only 70% of capacity,or 1,400 direct labor hours.Budgeted overhead at 70% of capacity is $38,900,and overhead actually incurred was $38,000.What is the company's volume variance for November?
(Indicate whether the variance is favorable or unfavorable)

Question

During November,Heim Company allocated overhead to products at the rate of $26.00 per direct labor hour.This figure was based on 80% of capacity or 1,600 direct labor hours.However,Heim Company operated at only 70% of capacity,or 1,400 direct labor hours.Budgeted overhead at 70% of capacity is $38,900,and overhead actually incurred was $38,000.What is the company's volume variance for November?
 (Indicate whether the variance is favorable or unfavorable)

Quizplus · Accepted Answer

The Answer of During November,Heim Company allocated overhead to products at the rate of $26.00 per direct labor hour.This figure was based on 80% of capacity or 1,600 direct labor hours.However,Heim Company operated at only 70% of capacity,or 1,400 direct labor hours.Budgeted overhead at 70% of capacity is $38,900,and overhead actually incurred was $38,000.What is the company's volume variance for November?
 (Indicate whether the variance is favorable or unfavorable)

During November,Heim Company Allocated Overhead to Products at the Rate