P3-3. Variable factory overhead variances. Coyote Corporation has provided the following data for August: Budgeted production: Actual production: Standard machine-hours per unit: Fixed budget machine-hours (10 x 2,600) Flexible budget machine-hours (10 x 2,400) Actual machine-hours Budgeted variable overhead cost per machine-hour: Lubricants: Supplies: Actual total variable overhead costs: Lubricants: Supplies: 2,600 unit 2,400 units 10 machine-hours 26,000 machine-hours 24,000 machine-hours 23,000 machine-hours $7/machine hour $2.8/ machine hour $ 184,000 $ 69,000 Instructions: 2. Compute the variable overhead rate variances and efficiency variances for lubricants. a. Indicate whether each of the variances is favorable (F) or unfavorable (U). b. Explain possible causes of the variances. 3. Compute the variable overhead rate variances and efficiency variances for supplies. a. Indicate whether each of the variances is favorable (F) or unfavorable (U). b. Explain possible causes of the variances.

P3-3. Variable factory overhead variances. Coyote Corporation has provided the following data for August: Instructions: 2. Compute the variable overhead rate variances and efficiency variances for lubricants. a. Indicate whether each of the variances is fogrorable (F) or unfavorable (U). b. Explain possible causes of the variances. 3. Compute the variable overhead rate variances and efficiency variances for supplies. a. Indicate whether each of the variances is favorable (F) or unfavorable (U). b. Explain possible causes of the variances