The following data are the actual results for Marvelous Marshmallow Company for October.

Actual output ................................................................................................................................... 9,000 cases Actual variable overhead ................................................................................................................ $405,000 Actual fixed overhead ..................................................................................................................... $122,000 Actual machine time ........................................................................................................................ 40,500 machine hours Standard cost and budget information for Marvelous Marshmallow Company follows:

Standard variable-overhead rate ................................................................................... $9.00 per machine hour Standard quantity of machine hours .............................................................................. 4 hours per case of marshmallows Budgeted fixed overhead ............................................................................................... $120,000 per month Budgeted output ............................................................................................................. 10,000 cases per month Required:
1. Use any of the methods explained in the chapter to compute the following variances. Indicate whether each variance is favorable or unfavorable, where appropriate.

a. Variable-overhead spending variance.

b. Variable-overhead efficiency variance.

c. Fixed-overhead budget variance.

d. Fixed-overhead volume variance.
2. Build a spreadsheet: Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change if the following information changes: actual output was 9,100 cases, and actual variable overhead was $395,000.