Exercise 3 Zeno Corporation's production standards include the following: Variable Overhead (4 direct labor hours @ $3.00 per direct labor hour) Fixed Overhead (4 direct labor hours @$5.00 per direct labor hour*) (*the fixed overhead rate was based on a budgeted production level of 10,000 units) Actual production for the period was 12,000 units. Actual direct labor hours used were 51,000 hours. The actual variable overhead costs incurred were $148,000 and the actual fixed overhead costs incurred were $220,000. Instructions Compute the two variable overhead variances and two fixed overhead variances. Variance Computations: Variable Overhead AQ AP AQ X SP SQ x SP Amount of Variance Name of Variance Unf or Fav? Fixed Overhead Actual Budget SQ SP Amount of Variance Name of Variance Unf or Fav