Requirement 5. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. (Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U).)

Eagle System Manufacturing Overhead Variances Total overhead variance: Actual overhead cost 1,812,000 Standard overhead allocated to production Total overhead variance F Overhead flexible budget variance: Actual overhead cost Flexible budget overhead for actual outputs Overhead flexible budget variance U Production volume variance: Flexible budget overhead for actual outputs Standard overhead allocated to production Production volume variance F Actual Results Static Budget (20,000 PCs) $ 8,400,000 (22,000 PCs) $ 9,680,000 1,940,000 1,995,000 Sales (20,000 PCs x $420) (22,000 PCs x $440 ) Variable manufacturing expenses: Direct materials (200,000 parts x $9.70) (210,000 parts x $9.50 ) Direct labour (40,000 hrs. x $14.30 ) (42,500 hrs. x $14.90 ) Variable overhead (200,000 parts x $ 4.10 ) (210,000 parts x $ 4.20 ) Fixed manufacturing expenses: 572,000 633,250 820,000 882,000 Fixed overhead 900,000 930,000 4,232,000 4,440,250 Total cost of goods sold $ Gross profit 4,168,000 $ 5,239,750