Managerial Accounting: P11-7A Stromski Company manufactures a single product

Managerial Accounting 
P11-7A Compute Variances 
Stromski Company manufactures a single product. The standard cost per unit of product is shown below. 
Direct materials-1 pound plastic at $7 per pound 7.00 
Direct labor-1.5 hours at $12.00 per hour 18.00 
Variable manufacturing overhead 11.25 
Fixed manufacturing overhead 3.75 
Total standard cost per unit 40.00 

The predetermined manufacturing overhead rate is $10 per direct labor hour ($15 / 1.5). It was computed from a master manufacturing overhead budget based on normal production of 7,500 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $56,250 ($7.50 per hour) and total fixed overhead costs of $18.750 ($2.50 per hour). Actual costs for October in producing 4,900 units were as follows. 
Direct materials (5,100 pounds) 37,230 
Direct labor (7,000 hours) 87,500 
Variable overhead 56,170 
Fixed overhead 19,680 
     Total manufacturing costs 200,580 

The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. 

Instructions 
Compute the overhead controllable variance and the overhead volume variance.
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