Texts: Ch 21: Homework Assignment (Graded)
[The following information applies to the questions displayed below.]
AirPro Corporation reports the following for this period.
Actual total overhead: $28,975
Standard overhead applied: $31,620
Budgeted (flexible) variable overhead rate: $2.10 per unit
Budgeted fixed overhead: $11,500
Predicted activity level: 11,500 units
Actual activity level: 10,200 units
Compute the volume variance and identify it as favorable or unfavorable.
Volume Variance:
Standard overhead applied: $31,620
Budgeted (flexible) overhead: $22,050
Volume variance: $9,570
Unfavorable