Reference no: EM132633744

Eaglehorn Company had the following overhead costs for the month of October 2019:

Budgeted (Based on 4,000 machine hours) Actual (based on 5,000 machine hours)

Variable overhead $12,000 $14,560

Fixed overhead 16,000 17,890

The company determined that their normal operating capacity is 4,000 machine hours.

Required:

Question 1: Calculate the following:

1. Variable overhead spending variance
2. Fixed overhead spending variance
3. Idle capacity variance
4. Total overhead variance