The overhead controllable variance is calculated as the difference between actual overhead costs incurred and the budgeted overhead costs applied to the product. overhead costs for the standard hours allowed. fixed overhead costs. overhead costs at the normal level of activity. The overhead volume variance relates only to variable overhead costs. fixed overhead costs. both variable and fixed overhead costs. all manufacturing costs An overhead volume variance is calculated as the difference between normal capacity hours and standard hours allowed times the predetermined fixed overhead rate. times the total predetermined overhead rate. times the predetermined variable overhead rate. divided by actual number of hours worked. Budgeted overhead for Skysong Industries at normal capacity of 40000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May, $388800 of overhead was incurred in working 40500 hours when 42000 standard hours were allowed. The overhead controllable variance is $31200 favorable. $31200 unfavorable. $15000 favorable. $23200 favorable