Pandom Inc. produces chemicals for large biotech companies.

It has the following data for manufacturing overhead costs during August 2015:

VariableFixed

Actual costs incurred......................................$35,700........$18,000

Costs allocated to products................................27,000.........14,400

Flexible budget: Budgeted input allowed for

actual output produced × budgeted rate.................27,000.........15,000

Actual input × budgeted rate..............................31,500.........15,000

Required

Fill in the variances in the table below. Use F for favourable and U for unfavourable.

VariableFixed

1. Rate variance.............................................$_____........$_____

2. Efficiency variance.......................................$_____........$_____

3. Production-volume variance............................$_____........$_____

4. Flexible-budget variance.................................$_____.......$_____

5. Underallocated manufacturing overhead..............$_____.......$_____