Four-variance analysis, working backwards. Fookmeup.com is striving to become a Web portal. The site allows surfers to find anything they want to look up—be it a person, a site, a company, or news article—through one interactive and easy-to-use interface. Most of Fookmeup.corn’s operating overhead is due to Internet connection costs. Fookmeup.com faces both fixed and variable Internet connection charges. Following is the four-variance analysis of Fookmeup.com’s operations overhead:

Spending Efficiency ProductionVariance Variance Volume Variance Variable Operating Overhead $44,400 F $28,800 F Never a variance Fixed Operating Overhead $16,800 U Never a variance $20,400 U Required 1. For total operating overhead, compute the following:

a. Spending variance

b. Efficiency variance

c. Production-volume variance

d. Flexible-budget variance

e. Total overhead variance Arrange your results in a suitable format for presenting three-variance, two-variance, and one-variance analyses.

2. If Lookmeup.com’s total actual operating overhead was $420,000, what was the operating overhead allocated to actual output units provided?

3. Can you say whether fixed operating overhead was under- or overallocated? Ifso, by what amount?

4. Are Fookmeup.com’s different variances in the four-variance analysis above necessarily independent? Explain and provide an example.