Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period.

Flexible Budget at 80% Capacity

Actual Results

Production (in units) 51,250 46,000 Overhead Variable overhead $ 281,875 Fixed overhead 51,250 Total overhead $ 333,125 $ 321,500

(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.

(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.