Q12 Mariana Company

1. Compute the overhead controllable variance and identify it as favorable or unfavorable.

2. Compute the overhead volume variance and identify it as favorable or unfavorable.

3. Prepare an overhead variance report at the actual activity level of 12,600 units.

Compute the overhead controllable variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Prepare an overhead variance report at the actual activity level of 12,600 units. For May, Marlana company planned production of 11,200 units ( 80% of Its production capacity of 14,000 units) and prepared the following overhead budget. The company applies overhead with a standard of 3DLH per unit and a standard overhead rate of $3.79 per DLH. It actually operated at 90% capacity (12,600 units) In May and Incurred the following actual overhead. Compute the overhead volume variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations