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Manuel Company predicts it will operate at 80% of its productive capacity. its overhead
allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The
company reports the following for this period. Exercise 21-18 (Static) Volume and controllable
variances LO P4 (1) Compute the overhead volume variance. Indicate variance as favorable or
unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or
unfavorable

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  • 1. Manuel Company predicts it will operate at 80% of its productive capacity. its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Exercise 21-18 (Static) Volume and controllable variances LO P4 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable