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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
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