Question 2
Your answer is partially correct.
In October, Pine Company reports 22,000 actual direct labor hours, and it incurs \$126,500 of manufacturing overhead costs. Standard hours allowed for
the work done is 25,300 hours. The predetermined overhead rate is \$5.10 per direct labor hour. In addition, the flexible manufacturing overhead budget
shows that budgeted costs are \$3.50 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 $ 49500 Favorable