Variable Overhead and Fixed Overhead Variances: Variable Overhead Variances: The following information relates to the month of April for The Trolley Manufacturing Company, which uses a standard cost accounting system. Actual direct labor hours used 7,000 Standard hours allowed for good output 7,500 Fixed overhead spending variance unfavorable $ 300 Actual total overhead (Actual Fixed OH included was $4,800) $ 16,000 Budgeted fixed costs $ 4,500 Normal activity in hours 6,000 Total overhead application rate per DLH $ 2.25 Fixed OH rate/DLH $ 0.75 Required: (Be sure to indicate whether the variances are favorable or unfavorable.) What is the variable overhead price/spending variance? _________________ b. What is the variable overhead efficiency variance? _______________ Fixed Overhead Variances: The following information is available for Baxter Manufacturing for April: Actual machine hours 840 Standard machine hours allowed 900 Denominator activity (machine hours) 1,000 Actual fixed overhead costs $ 3,800 Budgeted fixed overhead costs $ 4,000 Predetermined overhead rate ($1 variable + $4 fixed) $ 5 Required: (Be sure to indicate whether the variances are favorable or unfavorable.) c. What is the Fixed Overhead Spending Variance? _________________ d. What it the Fixed Overhead Volume Variance? ___________________