Exercise 11-25

Seacrest Companys overhead rate was based on estimates of $840,000 for overhead costs and 84,000 direct labor hours. Seacrests standards allow 4 hours of direct labor per unit produced. Production in May was 1,778 units, and actual overhead incurred in May was $71,844. The overhead budgeted for 7,112 standard direct labor hours is $70,784 ($21,000 fixed and $49,784 variable).

Compute the total, controllable, and volume variances for overhead.

1a). Total Overhead Variance $

1b). is the answer in (1a) Favorable or Unfavorably or Neither

2a). Overhead Controllable Variance $

2b). is the answer in (2a) Favorable or Unfavorably or Neither

3a). Overhead Volume Variance $

3b). is the answer in (3a) Favorable or Unfavorably or Neither

Please kindly show the steps so that I can replicate it. Thanks!