All variances; four variances for factory overhead Minneapolis Manufacturing Company manufactures a small electric motor that is a replacement part for the more popular gas furnaces. The standard cost card shows the product requirements as follows:

{Required:}
1. Calculate the factory overhead, spending, efficiency, budget, and volume variances.
2. Does the net variance represent under- or overapplied factory overhead?

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Direct materials: 2 lbs. @ $4/lb. Direct labor: 5 hrs. @ $8/hr. Factory overhead: Variable cost: 5 hrs. @ $2/hr. Fixed cost: 5 hrs. @ $4/hr.. Total standard cost per unit $ 8.00 40.00 10.00 20.00 .$78.00 Factory overhead rates are based on normal 100% capacity and the following flexible budgets: Units produced Factory overhead-variable Factory overhead-fixed Normal 90% 100% 110% 2,500 3,000 3,500 $25,000 $30,000 $35,000 $60,000 $60,000 $60,000 The company produced 3,500 units, using 18,375 direct labor hours and incurring the following overhead costs: Factory overhead-fixed Factory overhead-variable $61,950 $33,710