spending and efficiency variances for variable overhead and the budget variance for fixed overhead. Use Exhibit 10-13 as a guide in preparing the performance report. EXERCISE 10-17 Capacity Analysis [LO7 Comfort Company produces leather office chairs. The standard cost per chair is as follows: $35 2 Overhead rates are based on a denominator actvity level of 3000 machine-hours During 2015, Comfort Company produced and sold 12000 office chairs. Management believes that the denominator level of activity represents 75% of theoretical capacity and 80% of practical capacity Required: 1. Calculate the total overhead costs at the following levels of activity: theoretical, practical, denominator, and actual (2015). 2. Assuming Comfort Company can sell all of the chairs it can produce for $100 per unit, calculate the opportunity loss of producing 12,000 chairs in 2015 compared to the following capacity utilization alternatives: theoretical, practical, and denominator. PROBLEMS aconnect PROBLEM 10-18 Comprehensive Variance Analysis [LO2, LO3, LO4