2 Chapter 11 Flexible Budgeting and Analysis of Overhead Costs time Studi is of pro oblems All applicable Problems are available in Connect. Connect Problem 11-35 ghtforward Overhead Calgary Paper Company produces paper for photocopiers. The company has developed standard over- head rates based on a monthly capacity of 180.000 direct-labor hours as follows: ailable durin 11-5) areble overhe Standard costs per unit (one box of paper): Faed overhea l variable-overhead rate: per direct-labor hour Variable overhead (2 direct-labor hours @ $3 per hour) Fixed overhead (2 direct-labor hours Total 9 $ 10 $5 per hour) wired $16 Draw two g horizontal Lurs The During April, 90,000 units were scheduled for production: however, only 80,000 units were actually produced. The following data relate to April. 1. Actual direct-labor cost incurred was $1,567,500 for 165,000 actual hours of work. Each grap applied ov 2. Actual overhead incurred totaled $1,371,50 of which $511,500 was variable and $860,000 was fixed. 2 Write a b understar Required: variances. State whether each variance Prepare two exhibits similar to Exhibits 11-6 and 11-8 in the chapter, which show the following favorable or unfavorable, where appropriate. 1. Variable-overhead spending variance. 2. Variable-overhead efficiency variance. Newark Plas 3. Fixed-overhead budget variance. gt is based puny is able wethead c 4. Fixed-overhead volume variance. A tot ead costs -twelft