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.$

Compute the standard overhead rate. Hint. Standard allocation base at $80\%$ capacity is $30,000DLH,$ computed as $10,000$ units $$

$3\mathrm{.}00DLH$ per unit.

Compute the total overhead variance.

Compute the overhead controllable variance.

Compute the overhead volume variance.

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Compute the total overhead variance.

Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate

calculations.