Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 80,000 direct-labor hours as follows:

Standard costs per unit (one box of paper):
Variable overhead (3 direct-labor hours @ $4)	$	12
Fixed overhead (3 direct-labor hours @ $12)		36
Total	$	48

During April, 26,000 units were scheduled for production: however, only 20,000 units were actually produced. The following data relate to April.

Actual direct-labor cost incurred was $1,425,000 for 75,000 actual hours of work.

Actual overhead incurred totaled $1,372,500, of which $472,500 was variable and $900,000 was fixed.

Required:

Prepare two exhibits similar to Exhibit 11-6 and Exhibit 11-8, which show the following variances. State whether each variance is favorable or unfavorable, where appropriate.

Variable-overhead spending variance.

Variable-overhead efficiency variance.

Fixed-overhead budget variance.

Fixed-overhead volume variance.

Variable-Overhead Spending and Efficiency Variances. (Select "None" and enter "0" for no effect (i.e., zero variance). Round "Actual Rate" and "Standard Rate" to 2 decimal places.)

Variable-Overhead Spending And Efficiency Variances

(Hours = Direct-Labor Hours)

(1)

(2)

(3)

(4)

Actual Variable Overhead

Projected Variable Overhead

Flexible Budget: Variable Overhead

Variable Overhead Applied To Work-In-Process

Actual Qty (AQ)

Actual Rate (AVR)

Actual Qty (AQ)

Standard Rate (SVR)

Standard Allowed Qty (SQ)

Standard Rate (SVR)

Standard Allowed Qty (SQ)

Standard Rate (SVR)

hours

per hour

hours

per hour

hours

per hour

hours

per hour

Variable-overhead spending variance

Variable-overhead efficiency variance

No difference

Fixed-Overhead Budget and Volume Variances. (Select "None" and enter "0" for no effect (i.e., zero variance).)

Fixed-Overhead Budget And Volume Variances

(Hours = Direct-Labor Hours)

(1)

(2)

(3)

Actual Fixed Overhead

Budgeted Fixed Overhead

Fixed Overhead Applied To Work In Process

Standard Allowed Hours

Standard Fixed-Overhead Rate

hours

per hour

Fixed-overhead budget variance

Fixed-overhead volume variance