The Stanton Supply Company produces cleaning equipment for professional cleaners. At the start of the year, Stanton estimated variable overhead costs to be $13 per unit and total fixed overhead costs at $301,000, based on a volume of 66,000 units. The detail for the overhead estimates follows:
Variable Overhead
Indirect material ($8) .....................................................................$ 528,000
Utilities ($2) ................................................................................. 132,000
Maintenance ($3) ............................................................................198,000
Total variable overhead ..................................................................$ 858,000
Fixed Overhead
Supervisor salaries ........................................................................$ 126,000
Depreciation ..................................................................................150,000
Other fixed overhead .........................................................................25,000
Total fixed overhead ......................................................................$ 301,000
Total overhead costs .....................................................................$1,159,000
Actual costs for the year are as follows:
Actual Production . .....................................................................56,000 units
Variable Overhead
Indirect material ............................................................................$ 468,500
Utilities ..........................................................................................95,000
Maintenance ..................................................................................170,000
Total variable overhead $ ...................................................................733,500
Fixed Overhead
Supervisor salaries ........................................................................$ 127,000
Depreciation .................................................................................145,000
Other fixed overhead .........................................................................26,700
Total fixed overhead ......................................................................$ 298,700
Total overhead costs .....................................................................$1,032,200
Required
Calculate the controllable overhead variances for variable and fixed overhead. As a manager with limited time, which variances would you focus on?