Milberg Co. uses absorption costing and standard costing to improve cost control. In 2016, the total budgeted overhead rate was $1.55 per direct labour hour. When preparing the budget, Milberg expected a monthly activity level of 10,000 direct labour hours. The monthly variable overhead cost budgeted for this level of activity was $9,500.

The following data on actual results are provided for the month of November 2016.

SOLVE: the following variances:

Variable Overhead Spending Variance

Variable Overhead Efficiency Variance

Variable Overhead Total Variance

Fixed Overhead Spending Variance

Fixed Overhead Efficiency Variance

Fixed Overhead Total Variance

* please include all formulas and do not use excel

Materials purchased 20,000 units Direct labour costs incurred $36,000 Total of direct labour rate and efficiency variances 500 F $ 4.80 Actual wage rate ($0.20 less than standard) $ 1,065 U Underapplied variable overhead costs $ 2,256 U Total underapplied fixed and variable overhead costs Materials price variance 200 F Materials efficiency variance 610 F Price of purchased materials 0.60 per unit Materials used 15,000 units