ABC Company produces cases of frozen food. During May, the company produced 1 500 cases

of food and incurred the following actual costs:

Variable overhead $ 15 000

Fixed overhead $ 27 000

Actual direct labour cost (8 000 direct labour hours) 151 200

Actual material cost (30 000 kilograms purchased and used) 66 000

Standard cost and annual budget information is as follows:

Standard cost per case

Direct labour (5 hours @ $18) $ 90.00

Direct material (20 kilograms @ $2) 40.00

Variable overhead (5 hours @ $1.50) 7.50

Fixed overhead (5 hours @ $3) 15.00

total $152.50

Annual budget information

Variable overhead $150 000

Fixed overhead $300 000

Planned activity for year 100 000 direct labour hours

Required::::::

Calculate the following variances, indicating whether each variance is favourable or

unfavourable:

1>Variable overhead spending variance?

2>Variable overhead efficiency variance?

3>Fixed overhead budget variance?

4>Fixed overhead volume variance?