Problem - Dinkel Manufacturing Corporation accumulates the following data relative to jobs started and finished during the month of June 2010.

Costs and Production Data Actual Standard

Raw materials unit cost $3.15 $2.80

Raw materials units used 10,650 10,030

Direct labor payroll $171,598 $168,560

Direct labor hours worked 14,420 15,050

Manufacturing overhead incurred $184,900

Manufacturing overhead applied $265,482

Machine hours expected to be used at normal capacity 42,500

Budgeted fixed overhead for June $51,000

Variable overhead rate per hour $4.20

Fixed overhead rate per hour $1.68

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 $454,200. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used.

Compute the overhead controllable variance and the overhead volume variance.

1) Overhead controllable variance

2) Overhead volume variance