overhead efficiency variance, Financial Accounting

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The following information is for the third quarter of this year:

 

Planned

Actual

 

Production

92,000 units

87,000 units

 

Direct labor hours

506,800 DL hrs

380,000 DL hrs

 

Fixed manufacturing overhead

$205,000

$182,400

 

Variable manufacturing overhead

$910,000

$841,500

 

Standard direct labor hour per unit

5.5

 






Calculate the following three overhead variances.

a. Overhead volume variance

b. Overhead efficiency variance

c. Overhead spending variance


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