During November,Glime Company Allocated Overhead to Products at the Rate

question 189

Essay

During November,Glime Company allocated overhead to products at the rate of $26.00 per direct labor hour.This figure was based on 80% of capacity or 1,600 direct labor hours.However,Glime Company operated at only 70% of capacity,or 1,400 direct labor hours.Budgeted overhead at 70% of capacity is $38,900,and overhead actually incurred was $38,000.What is the company's volume variance for November? (Indicate whether the variance is favorable or unfavorable)

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Definitions:

Discretionary Income

The amount of an individual's income that is left for spending, investing, or saving after taxes and personal necessities (like food and shelter) have been paid.

Luxurious Vacation

A high-end travel experience featuring premium accommodations, exclusive amenities, and exceptional service.

Ritz-Carlton

A luxury hotel brand known for its high level of service quality and customer care, operating globally under the Marriott International portfolio.

Disposable Income

The financial resources that remain for saving and spending in households, following the deduction of income taxes.