Refer to the data in the preceding exercise. Use diagrams similar to those in Exhibits (a) and (b) to compute the variable-overhead spending and efficiency variances, and the fixed overhead budget and volume variances.

(a)

(b)

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Actual Fixed Overhead Budgeted Fixed Overhead Fixed Overhead Applied to Work in Process Standard Allowed Process Hours Standard Fixed Overhead Rate 6,000 process hours $2.00 per process hour $16,100 $15,000 $12,000 $1,100 Unfavorable $3,000 Unfavorable* Fixed-overhead budget variance Fixed-overhead volume variance Consistent with our discussion of the fxed-overhead volume variance, some managerial accountants would designate a positive variance as