Exercise 16-47 (Static) Overhead Variances (LO 16-5, 6)

Vienna Company uses direct labor hours as the overhead application base. The (partial) cost sheet for the single product manufactured follows.

Direct labor	(5 hours @ $20)	$	100
Variable overhead	(5 hours @ $2)		10
Fixed overhead	(5 hours @ $4)		20

The master budget level of production is 12,000 units of the product with 60,000 direct-labor hours. Other information available for operations over the past accounting period includes the following.

Actual variable overhead incurred	$	110,000
Actual fixed overhead incurred		253,000
Budgeted fixed overhead		240,000
Direct labor efficiency variance		140,000	U
Variable overhead price (spending)variance		4,000	F

Required: a. What was the variable overhead efficiency variance? b. What was the fixed overhead price (budget) variance? c. What was the fixed overhead production volume (volume) variance?

(For all requirements, indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)