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

Total Direct materials 5 pounds at $2 per pound $ 10

Direct labor 2 hours at $25 per hour 50

Variable factory overhead 2 hours at $5 per hour 10

Fixed factory overhead 2 hours at $20 per hour 40

Cost per unit $ 110

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:

Units manufactured 380

Direct materials purchased and used 1,900 pounds $ 20,900

Direct labor incurred 850 hours 22,950

Variable factory overhead incurred 5,440

Fixed factory overhead incurred 15,800

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

Account Debit (total) Credit (total)

Work-in-process inventory $ 183,000 $ 144,640

Finished goods inventory 144,640 121,690

Cost of goods sold 121,690

2. Compute the following factory overhead cost variances using a four-variance analysis (Show all work):

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.