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	352
Direct materials purchased and used	1,760	pounds		$	19,360
Direct labor incurred	950	hours			25,650
Variable factory overhead incurred					6,080
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	$	213,000			$	154,640
Finished goods inventory		154,640				131,690
Cost of goods sold		131,690

3. Compute the following factory overhead cost variances using three-variance analysis:

a. Overhead spending variance.

b. Overhead efficiency variance.

c. Fixed overhead production volume variance.

4. Compute the total overhead flexible-budget variance and the fixed overhead production volume variance using a two-variance analysis.

Required 1 Required 2 Required 3 Required 4 Required 5 Compute the following factory overhead cost variances using three-variance analysis: a. b. Overhead spending variance Overhead efficiency variance Fixed overhead production volume variance C. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the total overhead flexible-budget variance and the fixed overhead production volume variance using a two-variance analysis. Total overhead flexible-budget variance Fixed overhead production volume variance