Variable overhead (5 direct-labor hours @ $8.00 per hour) $40

Fixed overhead (5 direct-labor hours @ $12.00 per hour)* 60

Total overhead $100

Based on the capacity of 300000 direct-labor hours per month.

The following information is available for the month of October.

- Variable overhead costs were $2340000

- Fixed overhead costs were $3750000

- 56000 switches were produced, although 60000 switches were scheduled to be produced.

- 275000 direct-labor hours were worked at a total cost of $2550000.

Required:

Can you Compute the variable-overhead spending and efficiency variances and the fixed-overhead budget and volumes variances for Octobers. Indicate whether a variance is favorable or unfavorable where appropriate.