Using the information in P25-1A, compute the overhead controllable variance and the overhead volume variance.

P25-1A

Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials—1 pound plastic at $7.00 per pound...................$ 7.00

Direct labor—1.6 hours at $12.00 per hour..........................................19.20

Variable manufacturing overhead............................................................12.00

Fixed manufacturing overhead....................................................................4.00

Total standard cost per unit.....................................................................$42.20

The predetermined manufacturing overhead rate is $10 per direct labor hour ($16.00 ÷ 1.6). It was computed from a master manufacturing overhead budget based on normal production of 8,000 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $60,000 ($7.50 per hour) and total fixed overhead costs of $20,000 ($2.50 per hour). Actual costs for October in producing 4,800 units were as follows.

Direct materials (5,100 pounds)................................................$ 36,720

Direct labor (7,400 hours)...............................................................92,500

Variable overhead..............................................................................59,700

Fixed overhead....................................................................................21,000

Total manufacturing costs........................................................$209,920