In October Glazier Inc. reports 42000 actual direct labor hours and it incurs $194000 of manufacturing overhead costs. Standard hours allowed for the work done is 40000 hours. Glazier's predetermined overhead rate is $5.00 per direct labor hour.
Instructions
Compute the total manufacturing overhead variance.

Manufacturing Overhead Variance

The difference between the actual manufacturing overhead costs incurred and the overhead costs allocated to the production process based on a predetermined rate.

Direct Labor Hours

The cumulative working hours of employees directly engaged in the production process.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a specific activity (e.g., labor hours or machine hours).