Total overhead, three-variance analysis. The Atlantic Canada Air Force Base has an exten¬

sive repair facility for jet engines. It developed standard costing and flexible budgets to account for this activity. Budgeted variable overhead at a level of 8,000 standard monthly direct labour-hours was $76,800; budgeted total overhead at 10,000 standard direct labourhours was $237,120. The standard cost allocated to repair output included a total overhead rate of 120% ofstandard direct labour cost.

Total overhead incurred for October was $298,800. Direct labour costs incurred were $242,928. The direct labour price variance was $11,568 U. The direct labour flexible-budget variance was $17,328 U. The standard labour price was $19.20 per hour.

The production-volume variance was $16,800 F.

Required 1. Compute the direct labour efficiency variance and the spending, efficiency, and production volume variances for overhead. Also, compute the denominator level.

2. Describe how individual variable manufacturing overhead items are controlled from day to day. Also, describe how individual fixed manufacturing overhead items are controlled.