Overhead Controllable Variance
Okay, so here's my assignment. I got all of the answers except overhead controllable variance. I just cannot seem to get it. Please help!
Dinkel Manufacturing Corporation accumulates the following data relative to jobs started and finished during the month of June 2008.
Costs and Production Data
Actual Standard
Raw materials unit cost $2.70 $2.40
Raw materials units used 10,640 10,020
Direct labor payroll $147,288 $144,096
Direct labor hours worked 14,440 15,010
Manufacturing overhead incurred $184,700
Manufacturing overhead applied $189,126
Machine hours expected to be used at normal capacity 42,500
Budgeted fixed overhead for June $51,000
Variable overhead rate per hour $3.00
Fixed overhead rate per hour $1.20
Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $459,500. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used.
Compute all of the variances for (1) direct materials, (2) direct labor, and (3) manufacturing overhead.
Total materials variance $ 4680 Unfavorable
Materials price variance $ 3192 Unfavorable
Materials quantity variance $ 1488 Unfavorable
Total labor variance $ 3192 Unfavorable
Labor price variance $ 8664 Unfavorable
Labor quantity variance $ 5472 Favorable
Total overhead variance $ 4426 Favorable
Overhead controllable variance $?? Favorable
Overhead volume variance $ 3036 Favorable
