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Austin Company applies overhead on the basis of direct labor hours. Here is the information provided to you by the Controller. Standards: FOH (3 DLH)

Austin Company applies overhead on the basis of direct labor hours. Here is the information provided to you by the Controller.

Standards:

FOH (3 DLH)

Planned production: 8,000 units.

Budgeted factory overhead: $72,000

Budgeted fixed factory overhead: $48,000

Actual Hours Worked: 25,000

Actual Units Made: 8,500 units.

Actual manufacturing overhead cost incurred: $80,000.

Required:

Calculate the following:

a. Total Spending Variance

b. Total Efficiency Variance

c. Total Volume Variance

d. Proof

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