World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company expects to use 24,400 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.610 direct labor hours per unit. At the 80% capacity level, the total budgeted cost includes $53,680 fixed overhead cost and $273,280 variable overhead cost. In the current month, the company incurred $320,000 actual overhead and 21,400 actual labor hours while producing 37,000 units. (1) Compute the overhead volume variance. (2) Compute the overhead controllable variance.

Complete this question by entering your answers in the tabs below.

Compute the overhead volume variance. Classify as favorable or unfavorable. (Round "OH costs per DL hour" to 2 decimal places.)

Fixed OH per DL hr.

Fixed Overhead Applied
Fixed OH per DL hr.
Standard DL hours
Fixed Overhead applied
Volume Variance
Total budgeted fixed OH
Total fixed overhead applied
Volume variance

Compute the overhead controllable variance. Classify as favorable or unfavorable.

Fixed

Total actual overhead
Flexible budget overhead
Fixed
Variable
Total		0
Overhead controllable variance