Ell.22 Straightforward calculation of overhead variances: manufacturer The data below relate to Sporty Ltd, a manufacturer of exercise equipment, for August: Standard variable overhead rate $27 per machine hour Standard quantity of machine hours 2 hours per unit of output Budgeted fixed overhead $270 000 Budgeted output 15 000 units Actual results for August are as follows: Actual output 13 500 units Actual variable overhead $757 350 Actual fixed overhead $274 500 Actual machine time 29 700 machine hours Required: Calculate the following variances, indicating whether each variance is favourable or unfavourable: 1. variable overhead spending variance 2. variable overhead efficiency variance 3. fixed overhead budget variance 4. fixed overhead volume variance