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Use the following information to answer questions Q8-Q10:

MM Company makes motorcycle ignition switches. It uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours. You are given the following information:

• The standard direct labor hours per unit = 5 direct labor hours.
• Budgeted variable overhead rate = $10 per direct labor hour.

• 46,000 switches were produced although 40,000 switches were scheduled to be produced.
• 225,000 direct manufacturing labor hours were worked.
• Actual variable manufacturing overhead costs = $2,680,000.
• Actual fixed manufacturing overhead costs = $2,950,000.
• Budgeted fixed manufacturing overhead = $2,750,000.
• Fixed manufacturing overhead allocated = $2,870,00.

Required: Answer the following questions (Q8 Q10):

Q8.a The variable overhead efficiency variance is $.............

Q8.b The variance type in the question above is (put 1 if favorable, or 2 if unfavorable) .

Q9. a The spending variance for variable overhead is $.............

Q9.b The variance type is (put 1 if favorable, or 2 if unfavorable) .

Q10.a The spending variance for fixed overhead is $............

Q10.b The variance type is (put 1 if favorable, or 2 if unfavorable) .

Q11.a The fixed manufacturing overhead production volume variance is $............

Q11.b The variance type is (put 1 if favorable, or 2 if unfavorable) .

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