(Computation of all variances) The manager of the Automobile Registration Di¬ vision of the State of Louisiana has determined that it typically takes 30 minutes for the department’s employees to register a new car. The following predeter¬ mined overhead costs are applicable to Orleans Parish. Fixed overhead, com¬ puted on an estimated 4,000 direct labor hours, is $8 per DLH. Variable overhead is estimated at $3 per DLFL During July 1996, 7,600 cars were registered in Orleans Parish, taking 3,700 direct labor hours. For the month, variable overhead was $10,730 and fixed overhead was $29,950.

a. Compute overhead variances using a four-variance approach.

b. Compute overhead variances using a three-variance approach.

c. Compute overhead variances using a two-variance approach.

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