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Normal production is 1,000 units. Each unit has a direct labor hour standard of 5 hours. Overhead is applied to production based on standard direct labor hours. During the most recent month, only 1,080 units were produced; 4,500 direct labor hours were allowed for standard production, but only 4,000 hours were used. Standard and actual overhead costs were as follows.

		Standard (1,000 units)			Actual (1,080 units)
Indirect materials		$ 15,000			$ 15,400
Indirect labor		53,700			63,700
(Fixed) Manufacturing supervisors salaries		28,100			27,500
(Fixed) Manufacturing office employees salaries		16,200			15,600
(Fixed) Engineering costs		33,700			31,200
Computer costs		12,500			12,500
Electricity		3,100			3,100
(Fixed) Manufacturing building depreciation		10,000			10,000
(Fixed) Machinery depreciation		3,700			3,700
(Fixed) Trucks and forklift depreciation		1,900			1,900
Small tools		900			1,800
(Fixed) Insurance		600			600
(Fixed) Property taxes		400			400
Total		$179,800			$187,400

A. Calculate:

total overhead variance ____-25,580_____

controllable variance ___________________****** it is not 24,640 or 25,580

volume variance________________ *****it is not 35,960 or 17,980

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