Terkelsen Mfg. produces comforter sets with the following standard cost information:

• Each comforter set requires 0.5 hours of machine time to produce.

• Variable overhead is applied at the rate of $9 per machine hour.

• Fixed overhead is applied at the rate of $6 per machine hour, based on an expected annual capacity of 30,000 machine hours.

Production Statistics for 2010

Number of comforter sets produced ........62,000 units

Actual number of machine hours ..........33,300 hours

Variable overhead cost incurred .......... $265,400

Fixed overhead cost incurred .......... $177,250

a. Calculate variances using the one-variance approach.

b. Calculate variances using the two-variance approach.

c. Calculate variances using the three-variance approach.