Reference no: EM132999362

Bramble Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Bramble's controller. The company applies overhead on the basis of machine hours.

                                                              Annual Budget                 May Budget

Variable manufacturing overhead.        $ 2,072,800                  $ 184,000

Fixed manufacturing overhead               $ 1,202,400                  $ 100,200

Direct labor hours                                  48,000                            4,000

Machine hours                                       259,100                         23,000

During the month of May, Bramble used 4,470 direct labor hours and 21,640 machine hours. The flexible budget for the month allowed 4,060 direct labor hours and 21,210 machine hours. Actual fixed manufacturing overhead incurred was $ 109,700; variable manufacturing overhead incurred was $ 171,520.

Problem a) Calculate the variable overhead spending and efficiency variances for May.

Problem b) Calculate the fixed overhead spending variance for May