Overhead is applied on the basis of direct labor hours. B…

Overhead is applied on the basis of direct labor hours. Budgeted Direct Labor Hours  6,500 SP for Variable Overhead  $1.70 Actual Variable Overhead  $12,960 SQ x SP for Variable Overhead  $11,560 SQ x SP for Fixed Overhead  $23,120 Budgeted Fixed Overhead   $22,100 Actual Fixed Overhead  $24,000 Actual Direct Labor Hours  6,500 The fixed overhead volume variance was: