Reference no: EM13960483

The Stanton Supply Co. produces cleaning equipment for professional cleaners. At the start of the year, Stanton estimated variable overhead costs to be $13 per unit and total fixed overhead costs at $300,000 based on a volume of 60,000 units. The detail for the overhead estimates follows:

Variable Overhead:

Indirect material ($8)...........$480,000
Utilities ($2) ................$120,000
Maintenance ($3) ..............$180,000
Total variable overhead ..........$780,000

Fixed Overhead:

Supervisor salaries ..............$125,000
Depreciation ...............$150,000
Other fixed overhead............$25,000
Total fixed overhead............$300,000
Total overhead costs ........... $1,080,000

Actual costs for the year are as follows:

Actual Production .............55,000 units
Variable Overhead
Indirect material .............$467,500
Utilities .................$95,000
Maintenance ...............$170,000
Total variable overhead ..........$732,500

Fixed Overhead:

Supervisor salaries ...........$127,000
Depreciation ..............$145,000
Other fixed overhead...........$26,000
Total fixed overhead...........$298,000
Total overhead costs ........... $1,030,500

Required:

Calculate the controllable overhead variances for variable and fixed overhead. As a manager with limited time, which variances would you focus on?