Hatter,Inc

question 174

Essay

Hatter,Inc.allocates fixed overhead at a rate of $17 per direct labor hour.This amount is based on 90% of capacity or 3,600 direct labor hours for 6,000 units.During July,Hatter produced 5,500 units.Budgeted fixed overhead is $66,000,and overhead incurred was $67,000.
Required:
Determine the volume variance for July.

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Definitions:

Physical Stores

Brick-and-mortar locations where businesses sell their products or services to customers in person.

Foursquare

Foursquare is a local search-and-discovery mobile app which provides search results for its users based on their locations and preferences.

Coupons

Discount vouchers or codes that consumers can use to save money on purchases.

Collaborative Consumption

An economic model based on sharing, swapping, trading, or renting products and services, enabling access over ownership.