(CMA) Three-variance overhead analysis Standard Company has developed standard overhead costs based on a normal capacity of 180,000 direct labor hours as follows:

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Variable portion per unit (2 hours @ $3) Fixed portion per unit (2 hours @ $5) $6 10 $16 During April 85,000 units were scheduled for production; however, only 80,000 units were actually produced. Following are April data: Actual direct labor cost incurred was $644,000 for 165,000 actual hours of work. Actual overhead incurred totaled $1,378,000; $518,000 variable and $860,000 fixed. All inventories are carried at standard cost. REQUIRED Respond to the following questions by selecting the best answer. 1. The variable overhead spending variance for April was a. $15,000 U d. $38,000 U b. $23,000 U c. $38,000 F e. none of the above. b. $23,000 U c. $38,000 F e. none of the above. 2. The factory overhead efficiency variance for April was a. $15,000 U d. $38,000 U