Straightforward overhead variances : manufacturer

Lower Hutt Stationery company manufactures cardboard folders. The company has developed standard overhead rates based on a monthly capacity of 90000 direct hours (DLHs) as follows:

Standard costs per unit ( one box of folders):

variable overhead (2 hours @ $6 per DLH) $12

Fixed overhead (2 hours @$10 per DLH) 20

total $32

During April, 45000 units were budgeted for production; however, only 40000 units were produced. the following data relate to April:

• Actual direct labour cost incurred was $1567500 for 82500 actual hours of work.
• Actual overhead incurred totalled $1371500, of which $ 511500 was variable and $ 860000 was fixed.

Required:

prepare two exhibits,showing the following variances. state whether each variance is favourable or unfavourable

1. Variable overhead spending variance
2. Variable overhead efficiency variance
3. fixed overhead budget variance
4. fixed overhead volume variance