Reference no: EM132087143

Question: World Company expects to operate at 80% of its productive capacity of 70,000 units per month. At this planned level, the company expects to use 25,200 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 $57,960 fixed overhead cost and $322,560 variable overhead cost. In the current month, the company incurred $386,000 actual overhead and 22,200 actual labor hours while producing 53,000 units.

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

Fixed Overhead Applied

Standard DL hours

Fixed Overhead applied

Volume Variance

Total fixed overhead applied

Total budgeted fixed OH

Volume variance

Compute the overhead controllable variance.

Total actual overhead

Flexible budget overhead

Fixed

Variable

Total

Overhead controllable variance