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Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its...

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Accounting

Overhead Variances, Four-Variance Analysis
Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of
125,000 units requiring 500,000 direct labor hours. (Practical capacity is 520,000 hours.) Annual budgeted overhead costs total $820,000, of which $595,000 is fixed
overhead. A total of 119,000 units using 498,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $261,300, and actual
fixed overhead costs were $555,550.
Required:
Compute the fixed overhead spending and volume variances.
Fixed Overhead Spending Variance
Fixed Overhead Volume Variance
Compute the variable overhead spending and efficiency variances. Do not round intermediate calculations
Variable Overhead Spending Variance $
Variable Overhead Efficiency Variance
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