Exercise 11-22 Straightforward Computation of Overhead Variances (LO 11-5)

Crystal Glassware Company has the following standards and flexible-budget data.

Standard variable-overhead rate	$	6.00	per direct-labor hour
Standard quantity of direct labor		2	hours per unit of output
Budgeted fixed overhead	$	144,000
Budgeted output		24,000	units

Actual results for April are as follows:

Actual output		17,000	units
Actual variable overhead	$	306,000
Actual fixed overhead	$	141,000
Actual direct labor		50,000	hours

Required: Use the variance formulas to compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

Answer is not complete. 1. $ (6,000) Unfavorable 2. Variable-overhead spending variance Variable-overhead efficiency variance Fixed-overhead budget variance Unfavorable 3. $ 165,000 Favorable