Sheridan Company applies overhead based on direct labour hours. Two direct labour hours are required for each unit of product.

Planned production for the period was set at $8,500$ units. Manufacturing overhead is budgeted at $$136,000$ for the period $(20\%$ of this

cost is fixed$).$ The $16,200$ hours worked during the period resulted in the production of $8,000$ units. The variable manufacturing

overhead cost incurred was $$109,500$ and the fixed manufacturing overhead cost was $$28,000.$

$($a$)$

Your answer is correct.

Calculate the variable overhead spending variance for the period.

Variable overhead spending variance

$

$5820$

i

eTextbook and Media

Attempts: $2$ of $2$ used

$($b$)$

Your answer is correct.

Calculate the variable overhead efficiency $($quantity$)$ variance for the period.

Variable overhead efficiency variance

$

Unfavourable

eTextbook and Media

Attempts: $1$ of $2$ used

$($c$)$

Calculate the fixed overhead budget $($spending$)$ variance for the period.

Fixed overhead budget variance

$

eTextbook and Media

Attempts: $0$ of $2$ used