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Use the following information for the Exercises below. (Algo)

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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)	53,500	49,600
Overhead
Variable overhead	$ 294,250
Fixed overhead	53,500
Total overhead	$ 347,750	$ 351,200

Exercise 21-18 (Algo) Volume and controllable variances LO P4

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