11-26. The following data are the actual results for Marvelous Marshmallow Company for October.

Actual output9,000 casesActual variable overhead$405,000Actual fixed overhead$122,000Actual machine time40,500 machine hours

Standard cost and budget information for Marvelous Marshmallow Company follows:

Standard variable-overhead rate$9.00 per machine hourStandard quantity of machine hours4 hours per case of marshmallowsBudgeted fixed overhead$120,000 per monthBudgeted output10,000 cases per month

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.
   1. Variable-overhead spending variance.

Spending variance occurs when there is a difference between the actual and the budgeted amount set by the management.

Variable overhead spending variance = Actual variable overhead - (AH* SVR)

= $405,000 - (40,500*9)

=$405,000- 364,500

= $40,500 Adverse.

Variable-overhead efficiency variance.

Efficiency variance is the difference between the actual and the budgeted time taken to produce a product.

Variable overhead efficiency variance = SVR(AH-SH)

= $9(40,500 - 36,000)

= $40,500 Unfavorable.

Fixed-overhead budget variance.

Fixed- Overhead budget variance refers to the difference between the actual and the estimated total fixed overhead for a particular accounting period.

Fixed- overhead budget variance = Actual fixed overhead - Budgeted fixed overhead

= $122,000 - $120,000

= $2,000 Unfavorable.

Fixed-overhead volume variance.

Fixed- overhead volume variance is the difference between the actual and the budgeted amount applied to the manufactured goods based on the production volume.

Fixed- overhead volume variance = Budgeted fixed overhead - Applied fixed overhead

Budgeted fixed overhead = $120,000

Applied fixed overhead = Predetermined fixed overhead rate* Standard allowed hours

= $108,000.

Therefore, fixed- overhead volume variance = $120,000 - $108,000

= $12,000 Unfavorable.

PLEASE ANSWER THE FOLLOWING:

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.