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4 years ago

The following data for May has been provided by Mccawley Corporation:

Business

1 answer:

julsineya [31]4 years ago

8 0

Answer:

$3,920 favorable

Explanation:

For computing volume variance first we have to find out the overhead rate which is shown below:

Overhead rate is

= $78,400 ÷ 4,000 machine hours

= $19.6 per machine hour

And, the

Volume variance is

= (Normal capacity - standard hour allowed) × overhead rate

= (4,000 machine hours - 4,200 machine hours) × $19.6

= $3,920 favorable

We simply applied the above formula so that the volume variance could come

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