Company uses standard costing. The company prepared its static budget for 2013 at 2 560 000machine-hours for the year. Total budgeted overhead cost is $27,008,000. The variable overhead rate is $ 8permachine-hour($16perunit). Actual results for 2013follow:

Machine-hours	2,460,000	hours
Output	1,250,000	units
Variable overhead	$20,910,000
Fixed overhead rate variance	$1,550,000	U

Requirements

1.	Compute for the fixedoverhead:
	a. Budgeted amount. b. Budgeted cost permachine-hour. c. Actual cost. d.Production-volume variance.
2.	Compute the variable overhead rate variance and the variable overhead efficiency variance.
3.

Requirement 1.a. The budgeted fixed overhead is ?

.b.The budgeted fixed overhead cost permachine-hour is ?

.c. The actual fixed overhead cost is $?

.d. Calculate the fixedoverhead's production-volume variance. Label the variance as favourable(F) or unfavourable(U).

Production-volume variance

Requirement 2. Compute the variable overhead ratevariance, then the variable overhead efficiency variance. Label each variance as favourable(F) or unfavourable(U).

Variable overhead rate variance

Variable overhead efficiency variance