Exercise $11-22$

Straightforward Computation of Overhead Variances

LO$11-5)$

Crystal Glassware Company has the following standards and flexible$-$budget data.

Standard variable$-$overhead rate

Standard quantity of direct labor

Budgeted fixed overhead

Budgeted output

$$6\mathrm{.}00$ per direct$-$labor hour

$2$ hours per unit of output

$$100,000$

$25,000$ units

Actual results for April are as follows:

Actual output

$20,000$ units

Actual variable overhead

$$320,000$

Actual fixed overhead

$$97,000$

Actual direct labor

$50,000$ hours

Required:

Use the variance formulas to compute the following variances. Indicate whether each

variance is favorable or unfavorable, where appropriate.

Variable$-$overhead spending variance.

Variable$-$overhead efficiency variance.

Fixed$-$overhead budget variance.

Fixed$-$overhead volume variance.