Four-Variance Analysis Use the following data given for Marilyn, Inc. In addition, the company has determined that actual variable overhead cost in April was $21,980.
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Actual total cost for direct labor
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$86,800
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Total direct labor hours worked
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14,000
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Total standard labor hours for the output in April
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15,000
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Direct labor rate variance-unfavorable
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$2,800
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Actual total overhead cost
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$32,000
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Budgeted fixed overhead cost
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$9,000
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Practical capacity, in hours
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12,000
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Total overhead application rate per standard direct labor hour
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$2.25
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Required: Use the model presented in Exhibit to Compute the following variances for April:
1. Variable overhead efficiency variance.
2. Variable overhead spending variance.
3. Fixed overhead spending (budget) variance.
4. Production-volume variance.