Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 DLH per unit. For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual total overhead costs of $111,165.

Overhead Budget 80% Operating Levels

Production in units 10,000

Budgeted variable overhead $ 48,000

Budgeted fixed overhead $ 58,000

1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 20,000 DLH, computed as 10,000 units 2.00 DLH per unit.

2. Compute the total overhead variance.

3. Compute the overhead controllable variance.

4. Compute the overhead volume variance.