Janes comp. manufacturing overhead budget follows:

Variable manufacturing overhead is budgeted at $2.15 per machine hour

Fixed Manufacturing overhead budgeted at $44,800 per year

The denominator activity of 7,000 machine hours was chosen to compute the predetermined overhead rate

At the 7000 standard machine hours level of activity, the company should produce 5,000 units of product, which is a standard of 1.4 machine hours per unit,

The companys actual operating results were as follows:

Number of units produced

5,200

Actual machine hours used

7,200

Actual variable overhead costs

$15,809

Actual fixed overhead costs

$45,900

Question :

A) Compute the variable overhead efficiency variance. Be sure to note favorable or unfavorable.

B) Compute the fixed overhead budget variance, be sure to note favorable or unfavorable