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Fender allocates manufacturing overhead to production based on standard direct labor hours.

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Fender reported the following actual results for

2016:

actual number of fenders produced ,20,000;

actual variable overhead,$5,300;

actual fixed overhead,$27,000;

actual direct labor hours,370.

Read the requirements

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Requirement 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance.

Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.)

		Formula		Variance
VOH cost variance	=		=
VOH efficiency variance	=		=

		Formula						Variance
FOH cost variance	=	Actual FOH - Budgeted FOH	=		-		=
FOH volume variance	=	Bugeted FOH - Allocated FOH	=		-		=

Static budget variable overhead	$4,608
Static budget fixed overhead	$23,040
Static budget direct labor hours	576	hours
Static budget number of units	24,000	units
Standard direct labor hours	0.024	hours per fender

Thank you and have a good day