Manitoba Paper Company packages paper for photocopiers. The company has developed standard overhead rates based on a monthly practical capacity of 94,000 direct-labor hours as follows:

Standard costs per unit (one box of paper):
Variable overhead (2 hours @ $6)	$	12
Fixed overhead (2 hours @ $10)		20
Total	$	32

During June, 39,000 units were scheduled for production; however, only 33,000 units were actually produced. The following data relate to June.

1. Actual overhead incurred totaled $1,328,400, of which $428,400 was variable and $900,000 was fixed.

2. Actual direct-labor cost incurred was $1,700,000 for 68,000 actual hours of work.

Required:

Prepare two exhibits similar to Exhibits 11-6 and 11-8 in the chapter, which show the following variances. State whether each variance is favorable or unfavorable, where appropriate. (Select "None" and enter "0" for no effect (i.e., zero variance). Round "per hour" answers to 2 decimal places.)

1. Variable-overhead spending variance.

2. Variable-overhead efficiency variance.

3. Fixed-overhead budget variance.

4. Fixed-overhead volume variance.

Variable-Overhead Spending And Efficiency Variances

(Hours = Direct-Labor Hours)

(1)

(2)

(3)

(4)

Actual Variable Overhead

Projected Variable Overhead

Flexible Budget: Variable Overhead

Variable Overhead Applied To Work-In-Process

Actual Hours (AQ)

Actual Rate (AVR)

Actual Hours (AQ)

Standard Rate (SVR)

Standard Allowed Hours (SQ)

Standard Rate (SVR)

Standard Allowed Hours (SQ)

Standard Rate (SVR)

hours

per hour

hours

per hour

hours

per hour

hours

per hour

Variable-overhead spending variance

Variable-overhead efficiency variance

Fixed-Overhead Budget And Volume Variances

(Hours = Direct-Labor Hours)

(1)

(2)

(3)

Actual Fixed Overhead

Budgeted Fixed Overhead

Fixed Overhead Applied To Work In Process

Standard Allowed Hours

Standard Fixed-Overhead Rate

hours

per hour

Fixed-overhead budget variance

Fixed-overhead volume variance