Overhead variances are due to differences between the actual overhead costs incurred and the overhead applied to production. The overhead controllable variance equals the actual overhead minus the budgeted overhead. The volume variance equals the budgeted fixed overhead minus the applied fixed overhead. Knowledge Check or A Min Company operates at 80% capocity At this level, they produce 1,000 units, total overhead costs are $15,000, and they predict they will use 10,000 direct labor hours