variance 460678

AE11-23 (a)

Murphy Company’s overhead rate was based on estimates of $200,000 for overhead costs and 20,000 direct labor hours. Murphy’s standards allow 2 hours of direct labor per unit produced. Production in May was 900 units, and actual overhead incurred in May was $21,060. The overhead budgeted for 1,800 standard direct labor hours is $17,600 ($5,016 fixed and $12,584 variable).

Compute the total, controllable, and volume variances for overhead. (Round computation for fixed overhead rate to 2 decimal places, e.g. 10.50. Round computation for normal capacity and final answers to 0 decimal places, e.g. 125.)

Total overhead variance $

Overhead controllable variance $

Overhead volume variance $

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