Compute the overhead controllable variance

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Reference no: EM13124102

Earth Company expects to operate at 86% of its productive capacity of 52,000 units per month. At this planned level, the company expects to use 26,832 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate based on direct labor hours. At the 86% capacity level, the total budgeted cost includes $53,664 fixed overhead cost and $241,488 variable overhead cost. In the current month, the company incurred $335,000 actual overhead and 19,800 actual labor hours while producing 33,000 units.

Reference no: EM13124102

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