1) Gerhan Company's flexible budget for the units manufactured in May shows $15,650 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3 per direct labor hour (DLH), based on a denominator volume level of 6,120 DLHs, which represents 90% of available capacity. The company used 6,000 DLHs and incurred $18,900 of total factory overhead cost during May, including $7,600 for fixed factory overhead.

What is the variable factory overhead spending variance (to the nearest whole dollar) in May, assuming Gerhan uses a four-variance breakdown (decomposition) of the total overhead variance? (Round your intermediate calculation to 2 decimal places.)

A) $520 unfavorable.

B) $820 unfavorable.

C) $640 favorable.

D) $720 unfavorable.

E) N/Athis variance is not defined under the four-way breakdown of the total OVH variance.

2) Zero Company's standard factory overhead application rate is $3.77 per direct labor hour (DLH), calculated at 90% capacity = 1,000 standard DLHs. In December, the company operated at 80% of capacity, or 889 standard DLHs. Budgeted factory overhead at 80% of capacity is $3,100, of which $1,420 is fixed overhead. For December, the actual factory overhead cost incurred was $3,760 for 930 actual DLHs, of which $1,370 was for fixed factory overhead.

If Zero Company uses a two-way breakdown (decomposition) of the total overhead variance, what is the total factory overhead flexible-budget variance for December (to the nearest whole dollar)? (Do not round intermediate calculations.)

A) $435 unfavorable.

B) $700 unfavorable.

C) N/Athis variance doesn't exist under a two-way breakdown of the total overhead variance.

D) $660 unfavorable.

E) $235 favorable.

3) Gerhan Company's flexible budget for the units manufactured in May shows $15,640 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 6,120 DLHs, which represents 90% of available capacity. The company used 5,000 DLHs and incurred $16,500 of total factory overhead cost during May, including $6,800 for fixed factory overhead.

What is the total factory overhead flexible-budget variance (to the nearest whole dollar) for Gerhan Company in May?

A) $860 unfavorable.

B) $380 unfavorable.

C) $680 unfavorable.

D) $1,160 unfavorable.

$1,360 unfavorable.