Overhead Variances At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products Direct materials (4 lbs. $2.80) $11.20 36.00 Direct labor (2 hrs. $18.00) FOH (2 hrs. $5.20) VOH (2 hrs. $0.70) 10.40 1.40 Standard cost per unit $59,00 Lopez computes its overhead rates using practical volume, which is 50,000 units. The actual results for the year are as follows() Units produced: 79.600; (b) Direct labori 158,900 hours at $18.10; (C) FOH: 5831,000; and (d) VON $112,400 Required: 1. Compute the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select favorable or Unfavorable Spending variance Unfavorable Efficiency variance Favorable 2. Compute the fixed overhead spending and volume variances. Enter amounts as positive numbers and select favorable or unfavorable Favorable Spending variance Unfavorable Volume variance Previous Next