What is the volume variance


Genesis Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Genesis produced 5,000 units:


Standard:
DLH per unit 3.00
Variable overhead per DLH $1.80
Fixed overhead per DLH $3.25
Budgeted variable overhead $27,250
Budgeted fixed overhead $49,500

Actual:
Direct labor hours 16,000
Variable overhead $31,325
Fixed overhead $49,750

 

Refer to Genesis Company. Using the three-variance approach, what is the volume variance?

 

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Accounting Basics: What is the volume variance
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