A company manufactures binoculars. The cost of each pair of binoculars includes direct materials, direct labor, and manufacturing $($factory$)$

overhead. The firm traces all direct costs to products, and it assigns overhead cost to products based on direct labor hours.

The company budgeted $$11,440$ variable factory overhead cost, $$92,400$ for fixed factory overhead cost and $2,200$ direct labor hours $($its

practical capacity$)$ to manufacture $4,400$ pairs of binoculars in March.

The factory used $3,300$ direct labor hours in March to manufacture $4,200$ pairs of binoculars and spent $$16,400$ on variable overhead

during the month. The actual fixed overhead cost incurred for the month was $$95,000.$

Award: $5\mathrm{.}00$ points

Compute the following for the month indicate whether each variance is favorable $(F)$ or unfavorable $(U)$ :

Variable overhead spending variance

Variable overhead efficiency variance

Fixed overhead budget $($spending$)$ variance

Fixed overhead volume variance

Complete this question by entering your answers in the tabs below.

Calculate the following variances. Indicate whether each variance is favorable $($F$)$ or unfavorable $($U$).$