Benjamin Inc. uses a standard cost system and has the following information regarding the labor and overhead used in the production of widgets. Standard labor input is 2 hours per unit. The variable overhead rate is $8 per hour; fixed overhead is budgeted to be $100,000 on budgeted production of 8,000 widgets. During August, Benjamin Inc. paid its workers $161,670 for 16,800 hours. Actual variable overhead incurred totaled $133,560, actual fixed overhead totaled $98,956. Benjamin Inc. produced 8,600 widgets during August. Calculate the:
a. variable overhead rate variance.
b. variable overhead efficiency variance.
c. fixed overhead spending variance.

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The Answer of Benjamin Inc. uses a standard cost system and has the following information regarding the labor and overhead used in the production of widgets. Standard labor input is 2 hours per unit. The variable overhead rate is $8 per hour; fixed overhead is budgeted to be $100,000 on budgeted production of 8,000 widgets. During August, Benjamin Inc. paid its workers $161,670 for 16,800 hours. Actual variable overhead incurred totaled $133,560, actual fixed overhead totaled $98,956. Benjamin Inc. produced 8,600 widgets during August. Calculate the:
a. variable overhead rate variance.
b. variable overhead efficiency variance.
c. fixed overhead spending variance.