At the monthly management meeting, Leslie Smith, president of Mama Frans Fantastic Foods, was reviewing the April budget report with some satisfaction. Our actual results are never exactly what we budget, but I guess if were off by only 2% to 3%, weve done a good job forecasting. The report she referred to follows:

April Budget Report
		Actual		Budget		Variance
Sales (in pounds)		450,000		400,000		50,000 F
Revenue		$3,555,000		$3,200,000		$355,000 F
Less variable expenses
Direct material		865,000		580,000		285,000 U
Direct labor		348,000		336,000		12,000 U
Variable overhead		750,000		648,000		102,000 U
Total variable expenses		1,963,000		1,564,000		399,000 U
Contribution margin		$1,592,000		$1,636,000		($44,000 U)

Nathan Porter, the companys purchasing manager, chimed in. It surprises me that we did as well as we did. I know that chocolate prices went up dramatically last month, so I expected a much larger variance. And we had that little mix-up when we ordered a batch of whole almonds instead of sliced almonds. But controller Ashley Corley looked concerned. Hang on a minute, guys. I dont think this budget report gives us the true picture. Let me work on it some more and get back to you. Ashleys first step was to track down the following standard cost card for the cookies.

Chocolate Nut Supreme Cookies
Item		Quantity		Standard Unit Cost		Total Cost
Direct materials
Cookie mix		10 ounces		$0.02 per ounce		$0.20
Milk chocolate		5 ounces		$0.15 per ounce		0.75
Almonds		1 ounce		$0.50 per ounce		0.50
Total direct materials								$1.45
Direct labor
Mixing		1 minute		$14.40 per hour		0.24
Baking		2 minutes		$18.00 per hour		0.60
Total direct labor								0.84
Variable overhead		3 minutes		$32.40 per hour				1.62
Total standard cost per pound								$3.91

Ashley also tracked down this additional information about the months operations.

Item		Actual Quantity Used		Actual Cost
Direct materials
Cookie mix		4,650,000 ounces		$93,000
Milk chocolate		2,660,000 ounces		532,000
Almonds		480,000 ounces		240,000
Direct labor
Mixing		540,000 minutes		108,000
Baking		800,000 minutes		240,000
Variable overhead				750,000
Total actual variable costs				$1,963,000

Calculate the variable overhead variances for April.

Variable Overhead Spending Variance		$enter the variable overhead spending variance in dollars select an option NA, Unfavorable, Favorable
Variable Overhead Efficiency Variance		$enter the variable overhead efficiency variance in dollars select an option NA, U, F
Variable Overhead Flexible Budget Variance		$enter the variable overhead flexible budget variance in dollars select an option NA, F, U