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Darf Company, which applies overhead on the basis of direct labor hours. Two direct labor...

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Accounting

Darf Company, which applies overhead on the basis of direct labor hours. Two direct labor hours are required for each product unit. Planned production for the period was set at 9,000 units. Manufacturing overhead is budgeted at 135,000 for the period, of which 20% of this cost is fixed. The 17,200 hours worked during the period resulted in production of 8,500 units. Variable manufacturing overhead cost incurred was 108,500 and fixed manufacturing overhead cost was 28,000. Darf Company uses a four variance method for analyzing manufacturing overhead.

Requirements: with solution

1. The variable manufacturing overhead spending variance for the period

2. The variable manufacturing overhead efficiency variance for the period

3. The fixed manufacturing overhead spending variance for the period

4. The fixed manufacturing overhead volume variance for the period

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