Current Attempt in Progress

Sunland Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Sunland's controller. The company applies overhead on the basis of machine hours.

		Annual Budget		May Budget
Variable manufacturing overhead		$1,817,900		$158,900
Fixed manufacturing overhead		$1,201,200		$100,100
Direct labor hours		50,880		4,240
Machine hours		259,700		22,700

During the month of May, Sunland used 4,210 direct labor hours and 21,700 machine hours. The flexible budget for the month allowed 4,110 direct labor hours and 21,260 machine hours. Actual fixed manufacturing overhead incurred was $106,600; variable manufacturing overhead incurred was $150,900. (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Variable overhead spending variance		$enter the variable overhead spending variance in dollars	select an option FavorableUnfavorableNot Applicable
Variable overhead efficiency variance