Overhead Application, Fixed and Variable Overhead Variances

Required:

Round the fixed and variable overhead rates to two decimal places and use in subsequent computations. If required, round final answers to the nearest dollar.

Compute the applied fixed overhead.

Compute the fixed overhead spending and volume variances.

Spending: $$

X Unfavourable

Unfavourable $$

Volume:

Unfavourable $$

Compute the applied variable overhead.

Compute the variable overhead spending and efficiency variances.

Spending: $$

Favourable

$$ Favourable $$

Efficiency:

$$ Unfavourable