Exercise 8-25 (Static) Overhead controllable and volume variances; overhead variance report LO P4 For May, Mariana company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following overhead budget. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $3.85 per DLH. Overhead Budget Production (in units) Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Rent of building Depreciation-Machinery Supervisory salaries Total fixed overhead costs Total overhead Actual Overhead Costs Indirect materials Indirect labor Power Maintenance Rent of building Depreciation-Machinery $ 15,000 26,500 6,750 80% Operating Level It actually operated at 90% capacity (9,000 units) in May and incurred the following actual overhead. 4,000 15,000 10,000 8,000 $ 15,000 24,000 6,000 3,000 48,000 15,000 10,000 19,400 44,400 $ 92,400

Exercise 8-25 (Static) Overhead controllable and volume variances; overhead variance report LO P4 For May, Mariana company planned production of 8,000 units [80% of its production capacity of 10,000 units) and prepared the following overhead budget. The company applies overhead with a standard of 3DLH per unit and a standard overhead rate of $3.85 per DLH. It octually operated at 90% capacity (9,000 units) in May and incurred the following actual overhead