The following data are the actual results for Marvelous Marshmallow Company for August.

Actual output.............................................................13,500 cases

Actual variable overhead...........................................$607,500

Actual fixed overhead...............................................$183,000

Actual machine time..................................................60,750 machine hours

Standard cost and budget information for Marvelous Marshmallow Company follows:

Standard variable-overhead rate.......................$9.00 per machine hour

Standard quantity of machine hours................4 hours per case of marshmallows

Budgeted fixed overhead................................$180,000 per month

Budgeted output.............................................. 15,000 cases per month

Required:

1. Use any of the methods explained in the chapter to compute the following variances. Indicate whether each variance is favorable or unfavorable, where appropriate.

a. Variable-overhead spending variance.

b. Variable-overhead efficiency variance.

c. Fixed-overhead budget variance.

d. Fixed-overhead volume variance.

2. Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change if the following information changes: actual output was 13,350 cases, and actual variable overhead was $609,000.