Exercise 23-20 Computing volume and controllable overhead variances LO P4 World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company expects to use 25,000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.625 direct labor hour per unit. At the 80% capacity level, the total budgeted cost includes $50,000 fixed overhead cost and $275,000 variable overhead cost. In the current month, the company incurred $305,000 actual overhead and 22,000 actual labor hours while producing 35,000 units. (1) Compute the overhead volume variance. Classify each as favorable or unfavorable. (2) Compute the overhead controllable variance. Classify each as favorable or unfavorable. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required 1 2 Compute the overhead controllable variance. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Total actual overhead 305,000 Flexible budget overhead Fixed $ 50.000 43,750X Variable Total Overhead controllable variance 93,750 $ 283,125 Unfavorable