Question: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances Exercise 10-58 Overhead Variances At the beginning

1. Compute the variable overhead spending and efficiency variances. 2. Compute

1. Compute the variable overhead spending and efficiency variances.

2. Compute the fixed overhead spending and volume variances

Exercise 10-58 Overhead Variances At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Direct materials (4 lbs. @ $2.80) Direct labor (2 hrs. @ $18.00) FOH (2 hrs. @ $5.20) VOH (2 hrs. @ $0.70) Standard cost per unit $11.20 36.00 10.40 1.40 $59.00 Lopez computes its overhead rates using practical volume, which is 90,000 units. The actual results for the year are as follows: (a) Units produced:88,000; (b) Direct labor:170,000 hours at $18.10; (c) FOH: $930,000; and (d) VOH: $ 125,000

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