Alden Company uses a two-variance analysis for overhead variances. Practical capacity is defined as 28 setups and 28,000 machine hours to make 5,600 units per year. The data selected for 2016 are the following:

Budgeted Fixed Factory Overhead:
Setting	$ 61,600
Other	148.000
		ps	209,600
Total factory overhead incurred		ps	482,000
Variable Factory Overhead Rate:
by configuration		ps	450
per hour machine		ps	7
Total standard machine hours allowed for units manufactured			31,000	hours
Machine hours actually worked			34,000	hours
Actual total number of configurations			24

Required:

1.	Compute (a) the total overhead variance, (b) the overall efficiency variance, and (c) the total flexible budget variance for 2016.

2.

Assume that the company includes all installation costs as variable factory overhead. Therefore, the total budgeted fixed overhead is $148,000 and the standard variable overhead rate per configuration is $2,650. What are (a) overhead, (b) efficiency, and (c) variances? of the flexible budget for the year?

3.	Assume that the company uses only machine hours as the activity measure to apply variable and fixed overhead, and that it includes all installation costs as variable factory overhead. What is (a) the overhead variance, (b) the efficiency variance, and (c) the flexible budget variance for the year?