Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:

Variable overhead (5 hours @ $12 per direct manufacturing labor hour) $ 60

Fixed overhead (5 hours @ $15* per direct manufacturing labor hour) 75

Total overhead per switch $135

*Based on capacity of 200,000 direct manufacturing labor hours per month.

The following information is available for the month of December:

• 46,000 switches were produced although 40,000 switches were scheduled to be produced.
• 225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000.
• Variable manufacturing overhead costs were $2,750,000.
• Fixed manufacturing overhead costs were $3,050,000.

Part 1 [CMA Adapted] The variable overhead spending variance for December was

a. $50,000 U. b. $350,000 U. c. $10,000 F. d. $60,000 F.

Part 2 [CMA Adapted] The variable manufacturing overhead efficiency variance for December was

a. $50,000 U. b. $350,000 U. c. $10,000 F. d. $60,000 F.

Part 3 The total variable manufacturing overhead variance was

a. $10.000 F. 6 b. $10,000 U. c. $110,000 U. d. $110,000 F.