Overhead Variances

At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products:

Direct materials (4 lbs. @ $2.80)$11.20Direct labor (2 hrs. @ $18.00)36.00FOH(2 hrs. @ $5.20)10.40VOH(2 hrs. @ $0.70)1.40Standard cost per unit$59.00Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows:

1. Units produced: 79,600
2. Direct labor: 158,900 hours at $18.10
3. FOH:$831,000
4. VOH:$112,400

Required:

1.Compute the variable overhead spending and efficiency variances.

Spending variance$

Efficiency variance$

2.Compute the fixed overhead spending and volume variances.

Spending variances$

Volume variances$