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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.
Actual total cost for direct labor
$86,800
Total direct labor hours worked
14,000
Total standard labor hours for the output in April
15,000
Direct labor rate variance-unfavorable
$2,800
Actual total overhead cost
$32,000
Budgeted fixed overhead cost
$9,000
Practical capacity, in hours
12,000
Total overhead application rate per standard direct labor hour
$2.25
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.
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