The following information relates to Johnson,Inc.'s overhead costs for themonth:

Static budget variable overhead $ 7,000

Static budget fixed overhead $ 3,000

Static budget direct labor hours 1,000 hours

Static budget number of units 4,000 units

Johnson allocates manufacturing overhead to production based on standard direct labor hours. Lastmonth, Johnson reported the following actualresults: actual variableoverhead, $10,900; actual fixedoverhead, $2,770; actual production of 7,000 units at 0.20 direct labor hours per unit. The standard direct labor time is 0.25 direct labor hours per unit (1,000 static direct labor hours/ 4,000 staticunits).

Requirement 1. Compute the overhead variances for themonth: variable overhead costvariance, variable overhead efficiencyvariance, fixed overhead costvariance, and fixed overhead volume variance.

Begin by selecting the formulas needed to compute the variable overhead(VOH) and fixed overhead(FOH) variances, and then compute each variance amount.

___________________________= VOH cost variance

___________________________= VOH efficiency variance

___________________________=FOH cost variance

___________________________=FOH volume variance