Oriole Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2022, 10,300 suits were produced. The following standard and actual cost data applied to the month of May, when normal capacity was 13,905 direct labor hours. All materials purchased were used. Cost Element Direct materials Direct labor Overhead 8 yards at $4.70 per yard 1.45 hours at $13.40 per hour 1.45 hours at $6.80 per hour (fixed $3.80; variable $3.00) Standard (per unit) Overhead controllable variance $ Overhead volume variance $ Actual Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $52,839, and budgeted variable overhead was $41,715. Compute the overhead controllable variance and the overhead volume variance. $373,500 for 83,000 yards ($4.50 per yard) $217,327 for 15,635 hours ($13.90 per hour) $48,000 fixed overhead $36,500 variable overhead

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Oriole Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In
May 2022, 10,300 suits were produced. The following standard and actual cost data applied to the month of May, when normal
capacity was 13,905 direct labor hours. All materials purchased were used.
Cost Element
Direct
materials
Direct labor
Overhead
8 yards at $4.70 per yard
1.45 hours at $13.40 per hour
1.45 hours at $6.80 per hour (fixed $3.80; variable
$3.00)
Standard (per unit)
Overhead controllable variance $
Overhead volume variance
$
Actual
Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $52,839, and budgeted
variable overhead was $41,715.
Compute the overhead controllable variance and the overhead volume variance.
$373,500 for 83,000 yards ($4.50 per yard)
$217,327 for 15,635 hours ($13.90 per hour)
$48,000 fixed overhead $36,500 variable
overhead
Transcribed Image Text:Oriole Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2022, 10,300 suits were produced. The following standard and actual cost data applied to the month of May, when normal capacity was 13,905 direct labor hours. All materials purchased were used. Cost Element Direct materials Direct labor Overhead 8 yards at $4.70 per yard 1.45 hours at $13.40 per hour 1.45 hours at $6.80 per hour (fixed $3.80; variable $3.00) Standard (per unit) Overhead controllable variance $ Overhead volume variance $ Actual Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $52,839, and budgeted variable overhead was $41,715. Compute the overhead controllable variance and the overhead volume variance. $373,500 for 83,000 yards ($4.50 per yard) $217,327 for 15,635 hours ($13.90 per hour) $48,000 fixed overhead $36,500 variable overhead
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