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

question 66

Essay

During November,Heim Company allocated overhead to products at the rate of $26 per direct labor hour.This figure was based on 80% of capacity or 1,600 direct labor hours.However,Heim 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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