9.21

Jackman Co. used a standard overhead rate equal to $6.25 per direct labor hour. The rate was computed using expected activity. Budgeted overhead costs are $80,000 for 10,000 direct labor hours and $120,000 for 20,000 direct labor hours. During the past year, Jackman generated:

a. Actual Production: 4,000units

b. Fixed Overhead Volume Variance: $1,750 U

c. Variable overhead efficiency variance: $3,200 F

d. Actual Fixed overhead cost: $41,335

e. Actual variable overhead costs: $70,000

Required:

1. Determine the fixed overhead spending variance

2. Determine the variable overhead spending variance

3. determine the standard hours allowed per unit of product

4. Assuming the standard labor rate is $9.50 per hour, compute the direct labor efficiency variance.