The following standard overhead costs were developed for one of the products of Windrun Company:

Variable overhead 5 hours $4 per hour = $20. 00

Fixed overhead 5 hours $15 per hour = 75. 00

The following information is available regarding the companys operations for the period:

Units produced 20,000

Direct labour 115,000 hours

Overhead incurred:

Variable $437,500

Fixed $1,320,000

The budgeted fixed overhead for the period is $1,350,000, and the standard fixed overhead rate is based on the expected capacity of 90,000 direct labour hours.

Required:

A. Calculate the variable overhead spending variance and indicate whether it is favourable or unfavourable.

B. Calculate the variable overhead efficiency variance and indicate whether it is favourable or unfavourable.

C. Calculate the fixed overhead spending variance and indicate whether it is favourable or unfavourable.

D. Calculate the fixed overhead volume variance and indicate whether it is favourable or unfavourable.