Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 102,000 direct-labor hours as follows:

Standard costs per unit (one box of paper):
Variable overhead (2 direct-labor hours @ $5)	$	10
Fixed overhead (2 direct-labor hours @ $8)		16
Total	$	26

During April, 51,000 units were scheduled for production: however, only 45,000 units were actually produced. The following data relate to April.

1. Actual direct-labor cost incurred was $1,940,000 for 97,000 actual hours of work.

2. Actual overhead incurred totaled $1,362,600, of which $562,600 was variable and $800,000 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.

1. Variable-overhead spending variance.

2. Variable-overhead efficiency variance.

3. Fixed-overhead budget variance.

4. Fixed-overhead volume variance.

6_15_2016_QC_CS-53840