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Problem

Problem Variable-overhead Variances You nave been asked to prepare an analysis ot the overhead costs in the order processing department ot a mail-order company like Eddie Bauer. . As an initial step, you prepare a summary ot some events that bear on overhead tor the most recent period. Variable overhead is applied based on hours ot processing-clerk labor. The standard variable-overhead rate per order was S.O& The rate ot 10 orders per nour is regarded as standard productivity per clerk. The total overhead incurred was $204,000, ot which S138,OOO was fixed. The fixed-overhead spending variance was $2,500 unfavorable. The variable-overhead flexible-budget variance was $6,000 unfavorable. The variable-overhead spending variance was S3,600 favorable. Find the tollwing: 1. Variable-overnead efficiency variance 2. Actual hours ot input 3. Standard nours ot input allowed tor output achieved 4. Budgeted-fixed overhead