19.

World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company expects to use 24,400 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.610 direct labor hours per unit. At the 80% capacity level, the total budgeted cost includes $53,680 fixed overhead cost and $273,280 variable overhead cost. In the current month, the company incurred $320,000 actual overhead and 21,400 actual labor hours while producing 37,000 units. (1) Compute the overhead volume variance. (2) Compute the overhead controllable variance.

Required 1

Required 2

Compute the overhead volume variance. Classify as favorable or unfavorable. (Round "OH costs per DL hour" to 2 decimal places.)

Fixed Overhead Applied
Fixed OH per DL hr.	$2.20
Standard DL hours	0
Fixed Overhead applied	$13
Volume Variance
Total fixed overhead applied
Total budgeted fixed OH
Volume variance

Required 1

Required 2

Compute the overhead controllable variance. Classify as favorable or unfavorable.

Total actual overhead
Flexible budget overhead
Total		0
Overhead controllable variance