Reference no: EM132665991

Problem 1: Distinguish labor and variable-overhead efficiency variances. 

Problem 2: What is the fixed-overhead budget variance?

Crystal Glassware Company has the following standards and flexible-budget data. Straightforward Computation of Overhead Variances

Standard variable-overhead rate .. $6.00 per direct-labor hour

Standard quantity of direct labor 2 hours per unit of output

Budgeted fixed overhead $100,000

Budgeted output 25,000 units

Pupil Flexible Budgeting and Analysis of Overhead Costs Actual results for April are as follows:

Actual output ..... Actual variable overhead 20,000 units $320,000

Actual fixed overhead $97,000

Actual direct labor 50,000 hours

Required:

Problem 3: Use the variance formulas to compute the following variances. Indicate whether each vari- ance is favorable or unfavorable, where appropriate.

1. Variable-overhead spending variance.

2. Variable-overhead efficiency variance.

3. Fixed-overhead budget variance.

4. Fixed-overhead volume variance.