Simpson Manufacturing has the following standard cost sheet for one of its products:

The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determines the factory overhead rate based on a practical capacity of 400 units of the product.

Simpson has the following actual operating results for the year just completed:

Before closing the periodic accounts, the (standard cost) entries in selected accounts follow:

Required:

2) Compute the following factory overhead cost variances using a four-variance analysis:

a. Total variable overhead cost variance.

b. Variable overhead spending variance.

c. Variable overhead efficiency variance.

d. Total underapplied or overapplied variable overhead.

e. Fixed overhead spending variance.

f. Fixed overhead production volume variance.

g. Total fixed overhead cost variance.

h. Total underapplied or overapplied fixed overhead.

Direct materials Direct labor Variable factory overhead Fixed factory overhead Cost per unit 5 pounds at $2 per pound 2 hours at $25 per hour 2 hours at $5 per hour 2 hours at $20 per hour Total $ 10 50 10 40 $110 Units manufactured Direct materials purchased and used Direct labor incurred Variable factory overhead incurred Fixed factory overhead incurred 384 1,920 pounds 870 hours $21,120 23,490 5,568 15,800 Account Work-in-process inventory Finished goods inventory Cost of goods sold Debit (total) $189,000 146,640 123,690 Credit (total) $146,640 123,690 Compute the following factory overhead cost variances using a four-variance analysis: a. C. Total variable overhead cost variance b. Variable overhead spending variance Variable overhead efficiency variance d. Total underapplied or overapplied variable overhead Fixed overhead spending variance f. Fixed overhead production volume variance . Total fixed overhead cost variance h. Total underapplied or overapplied fixed overhead e. g