World Company expects to operate at 80% of its productive capacity of 66,250 units per month. At this planned level, the company expects to use 26,500 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate based on direct labor hours. At the 80% capacity level, the total budgeted cost includes $53,000 fixed overhead cost and $331,250 variable overhead cost. In the current month, the company incurred $389,000 actual overhead and 23,500 actual labor hours while producing 50,000 units.

(1)

Compute the overhead volume variance.

Fixed Overhead Applied
fixed OH per DL hr.			$2.00
Standard DL hr.			25000
fixed overhead applied			$50,000
Volume Variance
Total fixed overhead applied			$50,000
total budgeted fixed OH			53000
Volume Variance			$3,000

(2)

Compute the overhead controllable variance.

Total Actual overhead				$389,000
Flexible budget overhead
variable			??
fixed			??
Total				??
Overhead controllable variance				??