Reference no: EM132113336

Question - Fargo Corporation reported a $800 favorable price variance for variable overhead and a $8,000 favorable price variance for fixed overhead. The flexible budget had $513,600 variable overhead based on 21,400 direct labor-hours; only 21,200 hours were worked. Total actual overhead was $869,600. The number of estimated hours for computing the fixed overhead application rate totaled 22,000 hours.

a. Compute the following variable overhead variances.

Prive Variance

Efficiency Variance

Variable overhead cost variance

b. Compute the following fixed overhead variances.

Price Variance

Production volume variance

Fixed overhead cost variance