11.5Explain how you would interpret a variable overhead spending variance.

11.7Explain the meaning of the variable overhead efficiency variance.

11.22.

Straightforward calculation of overhead variances: manufacturer The data below relate to Super Fit Ltd, a manufacturer of exercise equipment, for the month of August: Standard variable overhead rate $18 per machine hour Standard quantity of machine hours 2 hours per unit of output Budgeted fixed overhead $180 000 Budgeted output 15 000 units Actual results for August are as follows: Actual output 13 500 units Actual variable overhead $504 900 Actual xed overhead $183 000 Actual machine time 29 700 machine hours Required: Calculate the following variances, indicating whether each variance is favourable or unfavourable: 1 Variable overhead spending variance. 2 Variable overhead efficiency variance. 3 Fixed overhead budget variance. 4 Fixed overhead volume variance