Questions about Overhead Variance Analysis

Overhead Variance Analysis . Calgary paper company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 130,000 direct laborhours as follows: Standard costs per unit {one box of paper]: _ 'v'ariable overhead {2 directlabor hours@$3 per hour Fixed overhead {2 directlabor hours@55 per hour] - During April, 90,000 units were scheduled for production: however, only 30,000 units were actually produced. The following data relate to April. 1. Actual direct-labor cost incurred was $1,551,500 for 155,000 actual hours of work. 2. Actual overhead incurred totaled $1,311,500, of which $511,500 was variable and $360,000 was xed. Heguired: Calculate the following variances. State whether each variance is favorable or unfavorable, where appropriate. 1. Variable-overhead spending variance. 2. Variable-overhead efciency variance. 3. Fixed-overhead budget variance. 4. Fixed-overhead volume variance