Reference no: EM132053406

Question - World Company expects to operate at 80% of its productive capacity of 72,500 units per month. At this planned level, the company expects to use 31,900 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 $79,750 fixed overhead cost and $414,700 variable overhead cost. In the current month, the company incurred $488,000 actual overhead and 28,900 actual labor hours while producing 55,000 units.

(1) Compute the overhead volume variance. (Round all your intermediate calculations to 2 decimal places.)

(2) Compute the overhead controllable variance.