4. Overhead (OH) Variances (3.5pts): Better Than That Co. provided the following information regarding Factory Overhead (OH) from its flexible OH budget. The company has an operating capacity of 100,000 units and expects to operate at 75% of its productive capacity (i.e. expects to operate at 75,000 units, which is 75%*100,000): Operating Levels (% of capacity) Flexible OH Budget: Budgeted output (units) Budgeted DL hours Budgeted OH: Variable OH Fixed OH 65% 70% 75% 80% 65,000 78,000 DLh 70,000 84,000 DLh 75,000 90,000 DLh 80,000 96,000 DLh $429,000 $630,000 $462,000 $630,000 $495,000 $630,000 $528,000 $630,000 During the current month, the company actually operated at 70% capacity and actually used 87,500 DL hours to produce 70,000 units. The following actual overhead costs were incurred: Actual Variable OH: Actual Fixed OH: $455,000 $590,000 a. (0.5pts) Calculate the predetermined standard OH rate per DL hour for (HINT: remember to calculate these OH rates at the BUDGETED capacity): i. ii. Variable OH Fixed OH b. (0.5pts) Calculate the Variable OH Cost Variance. Indicate whether this variance is favorable (F) or unfavorable (U). C. (0.5pts) Calculate the Variable OH Spending Variance. Indicate whether this variance is favorable (F) or unfavorable (U). d. (0.5pts) Calculate the Variable OH Efficiency Variance. Indicate whether this variance is favorable (F) or unfavorable (U). e. f. g. (0.5pts) Calculate the Fixed OH Cost Variance. Indicate whether this variance is favorable (F) or unfavorable (U). (0.5pts) Calculate the Fixed OH Spending Variance. Indicate whether this variance is favorable (F) or unfavorable (U). (0.5pts) Calculate the Fixed OH Volume Variance. Indicate whether this variance is favorable (F) or unfavorable (U).