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[The following information applies to the questions displayed below.] 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)	55,000	52,000
Overhead
Variable overhead	$ 302,500
Fixed overhead	55,000
Total overhead	$ 357,500	$ 371,000

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