Reference no: EM132581264

HSS Company provides security services to senior executives of prominent corporations when they travel outside the United States. HSS applies both fixed and variable overhead using direct labor hours. The annual budget for one if its customers is as follows:

Budgeted hours 800 hours Direct labor $50.00 per hr.

Variable overhead $30.00 per hr.

Fixed overhead$15.00 per hr.

During the year, HSS had the following activity related to this customer:

Actual hours were 850 at a total cost of $44,200.

Actual fixed overhead was $12,750.

Actual variable overhead was $22,950.

Question 1: What is the overall Static Budget Variance?

Question 2: What is the Variable Overhead Static Budget Variance?