Hennings Travel Company specializes in the production of travel items, (clocks, personal care kits). The following data were so that a variance anlysis could be performed:
Forecast Data (Expected Capacity)
Direct labor hours 40,000
Estimated overhead:
- Fixed 16,000
- Variable $ 30,000
Actual Results:
Direct labor hours 37,200
Overhead:
- Fixed $16,120
- Variable $ 28,060
The number of standard hours allowed for actual production was 37,000.
1- Calculate the variable overhead spending variance.
2- Calculate the variable overhead efficiency variance.
3- Calculate the fixed overhead volume variance.
4- Calculate the fixed overhead spending variance.