ACME Incorporated makes and sells funniiir socks. iCliverhead costs are applied on t basis of direct labour hours. The denominator activity is 130,000 direct labour hou and the budget fixed overhead costs fer the production equipment and facility,r are $05,000. The standard cost card shows the following: . Each unit requires 0 direct faggot; hours - Pre-determined variable overhead rate is $0.90 per direct tango]; hour ACME had the following actual operating results: Number of units produced 10,000 Actual directlabggr hours 120,000 Actual variable overhead costs $111,000 Actual xed overhead costs $ f0,000 Required: '1. Calculate the variable overhead spending and efciency.r variances. {5.5 marks} 2. Calculate the xed overhead budget and volume variances. [5.5 marks} Label vour variances {name w W or unfavourable} |