Caroline Inc. planned to produce 20000 units of product and work 100000 direct labor hours in 2016. Manufacturing overhead at the 100000 direct labor hours level of activity was estimated to be: $\begin{array}{lr}
\text { Variable manufacturing overhead } & \$ 700,000 \
\text { Fixed manufacturing overhead } & 300,000 \
\text { Total manufacturing overhead } & \$ 1,000,000
\end{array}$ At the end of 2016 19000 units of product were actually produced and 98000 actual direct labor hours were worked. Total actual overhead costs for 2016 were $935000.
Instructions
(a) Compute the total overhead variance.
(b) Compute the overhead controllable variance.
(c) Compute the overhead volume variance.

Question

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The Answer of Caroline Inc. planned to produce 20000 units of product and work 100000 direct labor hours in 2016. Manufacturing overhead at the 100000 direct labor hours level of activity was estimated to be: $\begin{array}{lr}
\text { Variable manufacturing overhead } & \$ 700,000 \
\text { Fixed manufacturing overhead } & 300,000 \
\text { Total manufacturing overhead } & \$ 1,000,000
\end{array}$ At the end of 2016 19000 units of product were actually produced and 98000 actual direct labor hours were worked. Total actual overhead costs for 2016 were $935000.
Instructions
(a) Compute the total overhead variance.
(b) Compute the overhead controllable variance.
(c) Compute the overhead volume variance.

Caroline Inc At the End of 2016 19000 Units of Product Were