CH11-Q5)

Riverbed Company allocates overhead on the basis of direct labour hours. Two direct labour hours are required for each unit of product. Planned production for the period was set at 8,500 units. Manufacturing overhead is estimated at $136,000 for the period (with 20% of this cost being fixed). The 16,300 hours worked during the period resulted in the production of 8,000 units. The variable manufacturing overhead cost incurred was $109,300, and the fixed manufacturing overhead cost was $28,100.

REQUIRED:

a.Calculate the variable overhead spending variance for the period.

b.Calculate the variable overhead efficiency (quantity) variance for the period.

c.Calculate the fixed overhead budget (spending) variance for the period.

d. Calculate the fixed overhead volume variance for the period.