Two-Variance Analysis and Direct Labor Variance Marilyn, Inc., uses a standard cost system and analyzes overhead using a two-variance analysis. The following information relates to its operations in April:
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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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Note: For the analysis of the total overhead variance, set up a model similar to the one presented in Exhibit 15.17.
Required
1. What was Marilyn's direct labor efficiency variance for April?
2. What was Marilyn's factory overhead flexible-budget variance for April?
3. What was Marilyn's production-volume variance for April?
4. What is the relationship between the direct labor efficiency variance and the variable overhead efficiency variance?