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Factory Overhead Variances Shateau Job Shop had the following operating data for its operations in 2010:
Budgeted fixed overhead
$20,000
Standard variable overhead application rate
$3 per MH
Fixed overhead incurred
$21,400
Variable overhead incurred
$32,500
Practical capacity (5,000 units)
10,000 MH
Actual machine hours (MH) worked
9,500
Units produced
4,500
Required: Build an Excel spreadsheet for the Shateau Job Shop that computes the following:
1. Variable overhead spending variance.
2. Variable overhead efficiency variance.
3. Fixed overhead spending (budget) variance.
4. Production-volume variance.
5. Overhead spending variance using a three-variance analysis.
6. Overhead flexible-budget (controllable) variance using a two-variance analysis.
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