Caroline, Inc. planned to produce 20,000 units of product and work 100,000 direct labor hours in 2016. Manufacturing overhead at the 100,000 direct labor hours level of activity was estimated to be:

Variable manufacturing overhead		$	700,000
Fixed manufacturing overhead			300,000
Total manufacturing overhead		$	1,000,000

At the end of 2016, 19,000 units of product were actually produced and 98,000 actual direct labor hours were worked. Total actual overhead costs for 2016 were $935,000.

Compute the total overhead variance. Identify whether the variance is favorable or unfavorable?

Total Overhead Variance

$

FavorableNot ApplicableUnfavorable

Compute the overhead controllable variance. Identify whether the variance is favorable or unfavorable?

Overhead Controllable Variance

$

FavorableUnfavorableNot Applicable

Compute the overhead volume variance. Identify whether the variance is favorable or unfavorable?

Overhead Volume Variance

$

UnfavorableFavorableNot Applicable