Questions 7 - 11 refer to the following: ABC Company has set the following standards for the production of one case of Zesty Pretzels: Usage Cost Direct Materials .9 pounds $5 per pound Direct Labor .4 hours $15 per hour Variable Overhead .4 hours $5 per hour Actual information recorded by ABC Company for the month of March is below: Purchased 7,000 pounds at a cost of $31,500 Used 5,616 pounds to make 5,200 good units Paid $32,214 for 2,184 hours of labor. Actual variable OH costs were $11,600.

11. The variable overhead spending variance for March is: a. $1,400 unfavorable c. $680 unfavorable b. $1,400 favorable d. $680 favorable

12. An unfavorable fixed overhead volume variance would indicate that: a. fewer units were made during the period than had been budgeted b. more units were made during the period than had been budgeted c. fewer labor hours were worked during the period than had been budgeted d. more labor hours were worked during the period than had been budgeted