Marvelous Marshmallow Pty Ltd provided the following actual production data for

September 2019.

Actual output 13 500 cases

Actual variable overhead $ 607 500

Actual fixed overhead $ 185 000

Actual machine time 60 750 machine hours

Standard cost and budget information for Marvelous Marshmallow Pty Ltd follows:

Standard variable overhead rate $9.00 per machine hour

Standard quantity of machine hours 5 hours per case of marshmallows

Budgeted fixed overhead $180 000 per month

Budgeted output 15 000 cases per month

Required:

Compute the following variances and indicate whether each variance is favorable or

unfavorable, where appropriate:

(a) Variable overhead spending variance; (4 marks)

(b) Variable overhead efficiency variance; (4 marks)

(c) Fixed overhead budget variance; (4 marks)

(d) Fixed overhead volume variance. (2 mark)