center black company planned to produce 40000 units of product and work at 10000

Question

center black company planned to produce 40000 units of product and work at 100000 direct labor hours level of activity for 2006. manufacturing overhead at this level of activity and the predetermined overhead rate is as follows

predetermined overhead rate per direct labor hour

variable manufacturing overhead 600000 $6

fixed manufacturing overhead 300000 $3

total manufacturing overhead 900000 $9

at the end of 2006, 44000 units were actually produced and 107400 direct labor hours were actually worked. total actual manufacturing overhead costs were 950000

a. computute overhead controllable variance
b. overhead volume variance

please show me how you find the answers. including flexible overhead, and applied overhead.

Explanation / Answer

14000 & 36000

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