Exercise $21-19($Algo$)$ Overhead controllable and volume variances LO P$4$

Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is $3\mathrm{.}00$ 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 $$179,125.$

Overhead Budget $80\%$ Operating Levels

Production in units $10,000$

Budgeted variable overhead $ $78,000$

Budgeted fixed overhead $ $93,000$

Compute the standard overhead rate. Hint: Standard allocation base at $80\%$ capacity is $30,000$ DLH$,$ computed as $10,000$ units $\backslash$times $3\mathrm{.}00$ DLH per unit.

Compute the total overhead variance.

Compute the overhead controllable variance.

Compute the overhead volume variance.