OH variances Nelson Co. manufactures a product that requires 3.5 machine hours per unit. The variable and fixed overhead rates were computed using expected capacity of 345,600 units (produced evenly throughout the year) and expected variable and fixed overhead costs, respectively, of $4,838,400 and $8,467,200. In October, Nelson manufactured 28,560 units using 100,320 machine hours. October variable overhead costs were $396,000; fixed overhead costs were $706,800. a. What are the standard variable and fixed overhead rates?

Standard VOH rate	Answer	per MH
Standard FOH rate	Answer	per MH

b. Compute the variable overhead variances. Note: Do not use a negative sign with your answer.

VOH spending variance	Answer	AnswerFavorableUnfavorableNeither favorable or unfavorable
VOH efficiency variance	Answer	AnswerFavorableUnfavorableNeither favorable or unfavorable
Total VOH variance	Answer	AnswerFavorableUnfavorableNeither favorable or unfavorable

c. Compute the fixed overhead variances. Note: Do not use a negative sign with your answer.

FOH spending variance	Answer	AnswerFavorableUnfavorableNeither favorable or unfavorable
FOH volume variance	Answer	AnswerFavorableUnfavorableNeither favorable or unfavorable
Total FOH variance	Answer	AnswerFavorableUnfavorableNeither favorable or unfavorable