Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 90,000 direct-labor hours as follows:

Standard costs per unit (one box of paper):

Variable overhead (4 direct-labor hours @ $2)........................$8

Fixed overhead (4 direct-labor hours @ $12)..............................$48

Total................................................................................................$56

During April, 25,000 units were scheduled for production: however, only 20,000 units were actually produced. The following data relate to April.

1. Actual direct-labor cost incurred was $1,782,000 for 99,000 actual hours of work.
2. Actual overhead incurred totaled $1,435,200, of which $475,200 was variable and $960,000 was fixed.

Required:

What is the:

1. Variable-overhead spending variance.
2. Variable-overhead efficiency variance.
3. Fixed-overhead budget variance.
4. Fixed-overhead volume variance.

(1) (2) (3) Flexible Budget: Variable Overhead (4) Variable Overhead Applied to Work in Process Actual Variable Overhead Projected Variable Overhead Actual Activity Level (AQ) X Actual Rate (AVR) Actual Activity Level (AQ) X Standard Rate (SVR) Standard Allowed Activity Level (SQ) X Standard Rate (SVR) Standard Allowed Activity Level (SQ) X Standard Rate (SVR) 6,300 process hours $5.50 per process hour 6,300 hour* hours X $5.00 per process X 6,000 process hours $5.00 per process hour $5.00 per process X 6,000 process hours hour hour $34,650 $31,500 $30.000 $30,000 sosyo sa unawerable spoon $1.oo unloverable spoon $3,150 Unfavorable $1,500 Unfavorable No difference Variable-overhead spending variance Variable-overhead efficiency variance (1) (2) (3) Actual Fixed Overhead Budgeted Fixed Overhead Fixed Overhead Applied to Work in Process Standard Allowed Activity Level Standard Fixed Overhead Rate 6,000 process hours X $2.00 per process hour $16,100 $15,000 $12,000 $1,100 Unfavorable $3,000 Unfavorable* Fixed-overhead budget variance Fixed-overhead volume variance