71. Using the four-variance approach, what is the variable overhead spending variance?

a. $4,375.00 U

b. $4,375.00 F

c. $8,750.00 U

d. $6,562.50 U

72. Using the four-variance approach, what is the variable overhead efficiency variance?

a. $2,187.50 U

b. $9,937.50 F

c. $2,187.50 F

d. $2,937.50 F

73. Using the four-variance approach, what is the fixed overhead spending variance?

a. $7,000 U

b. $3,125 F

c. $750 U

d. $750 F

74. Using the four-variance approach, what is the volume variance?

a. $3,125 F

b. $3,875 F

c. $6,063 U

d. $3,875 U

Use the following information for questions 7584.

Spots Inc. uses a standard cost system for its production process. Spots applies overhead based on direct labor hours. The following information is available for July:

Standard:

Direct labor hours per unit 2.20

Variable overhead per hour $2.50

Fixed overhead per hour

(based on 11,990 DLHs) $3.00

Units produced 4,400

Direct labor hours 8,800

Variable overhead $29,950

Fixed overhead $42,300

75. Using the four-variance approach, what is the variable overhead spending variance?

a. $7,950 U

b. $25 F

c. $7,975 U

d. $10,590 U

76. Using the four-variance approach, what is the variable overhead efficiency variance?

a. $9,570 F

b. $9,570 U

c. $2,200 F

d. $2,200 U

77. Using the four-variance approach, what is the fixed overhead spending variance?

a. $15,900 U

b. $6,330 U

c. $6,930 U

d. $935 F

78. Using the four-variance approach, what is the volume variance?

a. $6,930 U

b. $13,260 U

c. $0

d. $2,640 F

79. Using the three-variance approach, what is the spending variance?

a. $23,850 U

b. $23,850 F

c. $14,280 F

d. $14,280 U

80. Using the three-variance approach, what is the efficiency variance?

a. $11,770 F

b. $2,200 F

c. $7,975 U

d. $5,775 U