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Waterway Company's overhead rate was based on estimates of $792,000 for overhead costs and 79,200 direct labor hours. Waterway's standards allow 2 hours of
Waterway Company's overhead rate was based on estimates of $792,000 for overhead costs and 79,200 direct labor hours. Waterway's standards allow 2 hours of direct labor per unit produced. Production in May was 3,350 units, and actual overhead Incurred in May was $67,810. The overhead budgeted for 6,700 standard direct labor hours is $66,700 ($19,800 fixed and $46,900 variable). (a) Compute the total, controllable, and volume variances for overhead. Total Overhead Variance $ Overhead Controllable Variance $ Overhead Volume Variance
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