Exercise $21-19($Algo$)$ Overhead controllable and volume variances LO P$4$

Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is $2\mathrm{.}50$ DLH per unit. For

March, the company planned production of $8,000$ units $(80\%$ of its production capacity of $10,000$ units$)$ and prepared the following

budget. The company actually operated at $90\%$ capacity $(9,000$ units$)$ in March and incurred actual total overhead costs of $$106,145.$

Overhead Budget

Production in units

Budgeted variable overhead

Budgeted fixed overhead

$80\%$ Operating

Levels

Compute the standard overhead rate. Hint. Standard allocation base at $80\%$ capacity is $20,000DLH,$ computed as $8,000$ units $$

$2\mathrm{.}50$ DLH per unit.

Compute the total overhead variance.

Compute the overhead controllable variance.

Compute the overhead volume variance.

Complete this question by entering your answers in the tabs below.

Compute the overhead controllable variance.

Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate

calculations.