1. Maisa Corporation, the consultant of Marie Company, had summarized the following standard cost data extracted from the historical records and performance reports issued by the cost accounting department in the prior year to assist in her analysis and evaluation of the standard costing policy of the company:

	Input required/unit	Standard cost/unit	Standard cost/unit
Direct materials	6 kg/unit	$90/kg	$540
Direct labor	5 hrs/unit	$50/hr	$250

Other data are the following: Budgeted factory overhead for the year: Variable - 480,000 Fixed - 600,000 - The company's normal capacity per month is 400 units - Actual cost materials purchased for the year is $2,342,000 - During the year, direct materials purchased is 26,880 kg while direct materials actually used is 24,760 kgs - Actual labor costs for the year is $1,080,000 of which 24,900 direct labor hours was consumed - Actual factory overhead is $1,320,000, 65% of which is fixed cost, Factory Overhead is based on labor hours - Actual production during the year is 5,150 units a. How much is the spending variance? b. How much is the variable overhead efficiency variance? c. How much is the controllable variance

2. Haim Corporation uses a standard absorption system for product costing. The standard cost of this product is as follows: Raw Materials - $14.50; Direct labor for 2 hours @ $8/hr is $16; Manufacturing overhead for 2 hours @ $11/hr is $22. The total cost/unit (14.50+16+22) = $52.50. The manufacturing overhead rate is based upon normal annual activity level of 600,000 direct labor hours. The company planned to produce 25,000 units each month during 2020. Budgeted factory overhead for 2020 is composed of $3,600,000 variable and $3,000,000 fixed. During April 2021, 26,000 units of product were produced using 53,500 direct labor hours at a cost of $433,350. Actual manufacturing overhead for the month was $260,000 fixed and $315,000 variable. The total manufacturing overhead applied during April was $572,000. How much is the variable overhead spending variance?