The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing overhead. The firm traces all direct costs to products, and it assigns overhead based on direct labor hours. The company budgeted $11,925 variable overhead and 2,250 direct labor hours to manufacture 4,500 pairs of boots in March. The factory used 3,400 direct labor hours in March to manufacture 4,100 pairs of boots and spent $16,500 on variable overhead during the month. For March the Platter Valley factory of Bybee Industries budgeted $96,750 of fixed overhead. Its practical capacity is 2,250 direct labor hours per month (to manufacture 4,500 pairs of boots). The actual fixed overhead incurred for the month was $99,450. The factory uses a three-variance analysis of the total factory overhead variance.

a. Compute the total overhead spending variance, efficiency variance and fixed overhead production volume variance.

b. Determine the spending variances (both variable and fixed), the efficiency variance, and the fixed overhead production volume variance.

Four-Way Analysis of Total Overhead Variance
Variable overhead spending variance
Fixed overhead spending variance
Efficiency variance
Production volume variance

c. If the factory uses a two-variance analysis of the total factory overhead variance, conpute the total flexible-budget variance and the fixed overhead production volume variance for March.

d. Determine the flexible-budget variance and fixed overhead production volume variance for March.