The following standard costs were developed for one of the products of the Miller Corporation:
STANDARD COST CARD PER UNIT
Variable overhead: 9 hours × $9 per hour 81.00
Fixed overhead: 9 hours × $13 per hour 117.00
The following information is available regarding the company's operations for the period:
Units produced: 12,000
Direct labour: 85,000 hours costing $850,000
Overhead incurred:
Variable $786,000
Fixed $1,100,000
Budgeted fixed overhead for the period is $1,000,000, and the standard fixed overhead rate is based on expected capacity of 100,000 direct labour hours.
Required:
A. Calculate the variable overhead spending variance.
B. Calculate the variable overhead efficiency variance.
C. Calculate the fixed overhead spending variance.
D. Calculate the fixed overhead volume variance.

Question

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The Answer of The following standard costs were developed for one of the products of the Miller Corporation:
STANDARD COST CARD PER UNIT
Variable overhead: 9 hours × $9 per hour 81.00
Fixed overhead: 9 hours × $13 per hour 117.00
The following information is available regarding the company's operations for the period:
Units produced: 12,000
Direct labour: 85,000 hours costing $850,000
Overhead incurred:
Variable $786,000
Fixed $1,100,000
Budgeted fixed overhead for the period is $1,000,000, and the standard fixed overhead rate is based on expected capacity of 100,000 direct labour hours.
Required:
A. Calculate the variable overhead spending variance.
B. Calculate the variable overhead efficiency variance.
C. Calculate the fixed overhead spending variance.
D. Calculate the fixed overhead volume variance.

The Following Standard Costs Were Developed for One of the Products