Direct materials (10lbs @ $3 per lb).........$30.00

Direct Labor (4 hrs @ $6 per hr)...............24.00

Overhead ( 4 hrs @ 2.50 per hr)...............10.00

Total standard cost...................................64.00

predetermined overhead rate is based on a planned operation volume of 80 % of the productive capacity of 10,000 units per month. the following flexible budget information is available.

Operating levels

70 % 80 % 90 %

production in units 7,000 8,000 9,000

standard direct labor hrs 28,000 32,000 36,000

Budgeted overhead

Variable overhead costs

indirect materials $8,750 $10,000 $11,250

indirect labor 14,000 16,000 18,000

Power 3,500 4,000 4,500

Maintenance 1,750 2000 2,250

Total variable cost 28,800 32,000 36,000

Fixed overhead costs

Rent of factory building 12,000 12,000 12,000

Depreciation-machinery 20,000 20,000 20,000

Supervisory salaries 16,000 16,000 16,000

Total fixed cost 48,000 48,000 48,000

Total overhead costs 76,000 80,000 84,000

During May, the company operated at 90% of capacity and produced 9,000 units,, incurring the following actual costs

Direct material (92,000 lbs @ 2.95 per lb)......................$271,400

Direct labor ( 37,600 hrs @ 6.05 per hr).........................227,480

Overhead costs

indirect materials...................................$10,000

indirect labor.........................................16,000

Power....................................................4,500

Maintenance..........................................3,000

rent of factory building...........................12,000

Depreciation-machinary..........................19,200

Supervisory salaries................................17,000 81,700

Total cost 580,580

I need to compute (a) variable overhead spending and efficiency (b) fixed overhead spending and volume and (c) total overhead controllable

also prepare a detailed overhead variance report that shows the variances for individual items of overhead.

(I know for Variable overhead it is Actural hr X actual variable rate. AH X Standard variable rate SH X SVRHow do I figure out actual variable rate?)