a) calculate variable overhead efficiency variance

b) calculate Fixed overhead budget variance

c) calculate fixed overhead volume variance

The Oakleigh Company has the information available for its production facility for the month of July. The budgeted activity level for fixed manufacturing overhead was estimated to be 48 000 machine hours for the production cycle. Actual machine hours for the period were 50 000, which resulted in the completion of 9900 units. W Materials purchased (21 000 items) $819 000 Material quantity variance $39 600 U Actual labour cost (15 000 hours) $102 000 Machine hours used 50 000 Variable overhead spending variance $2 500 U Actual fixed manufacturing overhead $150 000 Oakleigh's standard costs per unit are as follows: Direct materials 20 components @ $4 per item Direct labour 1.5 hours @$6 per hour Variable overhead (applied on machine hours basis) 4.8 hours @$2.5 per hour Fixed overhead (applied on machine hour basis) 4.8 hours @ $3 per hour