156. 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.)
157. Selected information from Michaels Company's flexible budget follows:
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Operating Levels
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80%
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90%
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100%
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Budgeted production in units
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4,800
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5,400
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6,000
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Budgeted labor (standard hours)
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9,600
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10,800
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12,000
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Budgeted overhead:
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Variable overhead
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$86,400
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$97,200
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$108,000
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Fixed overhead
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63,600
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63,600
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63,600
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|
|
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|
|
|
|
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Michaels Company applies overhead to production at a rate of $31.25 per unit based on a normal operating level of 80% of capacity. For the current period, Michaels Company produced 5,400 units and incurred $62,000 of fixed overhead costs and $96,000 of variable overhead costs. The company used 11,000 labor hours to produce the 5,400 units. Calculate the variable overhead spending and efficiency variances and the fixed overhead spending and volume variances. Indicate whether each variance is favorable or unfavorable.
158. Cheshire, Inc., allocates fixed overhead at a rate of $18 per direct labor hour. This amount is based on 90% of capacity or 3,600 direct labor hours for 6,000 units. During May, Cheshire produced 5,500 units. Budgeted fixed overhead is $66,000, and overhead incurred was $67,000.
Required:
Determine the volume variance for May.