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Exercise 11-26 Straightforward Computation of Overhead Variances (LO 11-5) The following data are the actual results for Marvelous Marshmallow Company for October

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Exercise 11-26 Straightforward Computation of Overhead Variances (LO 11-5)

The following data are the actual results for Marvelous Marshmallow Company for October.

 

   Actual output 12,000cases

Actual variable overhead$401,000 

Actual fixed overhead$160,000 

Actual machine time 41,200machine hours

  

Standard cost and budget information for Marvelous Marshmallow Company follows:

  

   Standard variable-overhead rate$9.00per machine hour

Standard quantity of machine hours 3hours per case of marshmallows

Budgeted fixed overhead$153,000per month

Budgeted output 17,000cases per month

 

Required:

Use any of the methods explained in the chapter to compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

 

Variable-overhead spending variance 30,200 U

Variable overhead efficiency variance 46800 F

Fixed overhead budget variance 7000 U

Fixed overhead volume variance ????