Asma Surgical Instruments Inc. makes a special line of forceps, SFA, in batches. Asma randomly selects forceps from each SFA batch for quality-testing purposes. Quality-testing costs are batch-level costs. A separate quality-testing section is responsible for SFA quality testing. Quality-testing costs consist of some variable and some fixed costs in relation to the quality-testing hours. The following information is for 2013:

REQUIRED
1. For variable testing overhead costs, compute the efficiency and rate variances. Comment on the results.
2. For fixed testing overhead costs, compute the rate and the production-volume variances.
Comment on the results.

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Static-Budget Actual Amounts Amounts Units of SFA produced and sold Batch size (number of units per batch) Testing hours per batclh Variable overhead cost per testing hour Total fixed testing overhead costs 21,000 500 5.5 48.00 S32,650.00 22,000 550 5.4 $ 50.40 S32,659.00