Overhead and Overhead Variances (Variable and Fixed)

At the beginning of the year, Fort Worth Manufacturing estimated that its annual variable factory overhead would be $925,900, and its fixed factory overhead would be $1,817,300. The companys payroll consisted of 25 direct labor employees, and each was expected to work 1,810 direct labor hours. Fort Worth applies overhead to products based on direct labor hours. Each finished unit produced by the company is anticipated to require 4.25 direct labor hours.

Actual production and cost information for the year is as follows:

Total units produced 12,000

Actual variable overhead $ 898,000

Actual fixed overhead $ 1,925,000

Actual labor hours 46,250

a)Compute the variable overhead variances.

b)Compute the fixed overhead variances.

Worksheet overhead variances

(a) Variable overhead variances
Actual cost of variable overhead	$ -
Standard hours	-
Standard rate per hour	$ -
Standard cost of variable overhead	$ -
Actual use at standard cost	$ -
Total favorable variable overhead variance	$ -
Variable overhead spending variance	$ -
Variable overhead efficiency variance	$ -
(b) Fixed overhead variances
Actual cost of fixed overhead	$ -
Standard hours	-
Standard rate per hour	$ -
Standard cost of variable overhead	$ -
Budgeted fixed overhead	$ -
Total unfavorable fixed overhead variance	$ -
Fixed overhead spending variance	$ -
Fixed overhead volume variance	$ -