Compute the total-controllable and volume variances


Jackson Company's overhead rate was based on estimates of $200,000 for overhead costs and 20,000 direct labor hours. Jackson's standards allow 2 hours of direct labor per unit produced. Production in May was 900 units, and actual overhead incurred in May was $20,780. The overhead budgeted for 1,800 standard direct labor hours is $17,600 ($5,016 fixed and $12,584 variable).

Compute the total, controllable, and volume variances for overhead.

1)Total overhead variance

2)Overhead controllable variance

3)Overhead volume variance

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Accounting Basics: Compute the total-controllable and volume variances
Reference No:- TGS064497

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