LO.2 (OH variances) Edina Co. manufactures

a product that requires 3.5 machine hours per

unit. The variable and fixed overhead rates

were computed using expected capacity of

172800 units (produced evenly throughout

the year) and expected variable and fixed

overhead costs, respectively, of $2,419,200

and $4233,600. In October, Edina

manufactured 14,280 units using 50,160

machine hours. October variable overhead

costs were $198,000; fixed overhead costs

were $353,400.

a. What are the standard variable

and fixed overhead rates?

b. Compute the variable overhead

variances.

c. Compute the fixed overhead

variances.

d. Explain the volume variance

computed in part (c).