Question - In October, Roby Company reports 21,930 actual direct labor hours, and it incurs $133,920 of manufacturing overhead costs. Standard hours allowed for the work done is 24,800 hours. The predetermined overhead rate is $5.64 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $4 variable per direct labor hour and $53,750 fixed.
Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours.