Exercise 8-20 Computation of volume and controllable overhead variances LO P3 World Company expects to operate at 80% of its productive capacity of 72,500 units per month. At this planned level, the company expects to use 31,900 standard hours of direct labor. Overhead Is allocated to products using a predetermined standard rate of 0.550 direct labor hours per unit. At the 80% capacity level, the total budgeted cost includes $79,750 fixed overhead cost and $414700 variable overhead cost. In the current month, the company Incurred $488,000 actual overhead and 28,900 actual labor hours while producing 55,000 units. (1) Compute the overhead volume varlance. (2) Compute the overhead controllable varlance. Complete this question by entering your answers in the tabs below. Required 1Required 2 Compute the overhead volume variance. Classify as favorable or unfavorable. (Round "OH costs per DL hour" to 2 decimal places.) Fixed Overhead Applied Fixed Overhead applied Volume Variance Volume variance Complete this question by entering your answers in the tabs below. Required 1Required 2 Compute the overhead controllable variance. Classify as favorable or unfavorable. Total actual overhead Flexible budget overhead Total Overhead controllable variance Required 1 Required2