Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 80,000 direct-labor hours as follows:

Standard costs per unit (one box of paper):
Variable overhead (3 direct-labor hours @ $4)	$	12
Fixed overhead (3 direct-labor hours @ $12)		36
Total	$	48

During April, 26,000 units were scheduled for production: however, only 20,000 units were actually produced. The following data relate to April.

Actual direct-labor cost incurred was $1,425,000 for 75,000 actual hours of work.

Actual overhead incurred totaled $1,372,500, of which $472,500 was variable and $900,000 was fixed.

Required:

Prepare two exhibits similar to Exhibit 11-6 and Exhibit 11-8, which show the following variances. State whether each variance is favorable or unfavorable, where appropriate.

Variable-overhead spending variance.

Variable-overhead efficiency variance.

Fixed-overhead budget variance.

Fixed-overhead volume variance.

Fixed-Overhead Budget and Volume Variances. (Select "None" and enter "0" for no effect (i.e., zero variance).)

	Fixed-Overhead Budget And Volume Variances (Hours = Direct-Labor Hours) (1) (2) (3) Actual Fixed Overhead Budgeted Fixed Overhead Fixed Overhead Applied To Work In Process Standard Allowed Hours Standard Fixed-Overhead Rate 60,000 $12 hours per hour $900,000 $720,000 Favorable Unfavorable Fixed-overhead budget variance Fixed-overhead volume variance