The Following Data for November Have Been Provided by Mazzio

question 29

Essay

The following data for November have been provided by Mazzio Corporation, a producer of precision drills for oil exploration:
$$\begin{array} { l c } \text { Budgeted production } & 4,000 \mathrm { drills } \\\text { Standard machine-hours per drill } & 8.4 \text { machine-hours } \\\text { Standard indirect labor } & \$ 9.40 \text { per machine-hour } \\\text { Standard power } & \$ 2.90 \text { per machine-hour } \\& \\\text { Actual production } & 4,300 \text { drills } \\\text { Actual machine-hours } & 36,530 \text { machine-hours } \\\text { Actual indirect labor } & \$ 362,756 \\\text { Actual power } & \$ 97,693\end{array}$$
Required:
Compute the variable overhead rate variances for indirect labor and for power for November. Indicate whether each of the variances is favorable (F) or unfavorable (U). Show your work.

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Definitions:

Tapetum Fibrosum

A layer of reflective tissue located in the eyes of some animals, contributing to their ability to see in low light conditions.

Night Vision

The ability to see in low-light conditions, often enhanced by the use of specialized equipment or the adaptation of the eyes to darkness.

Tarsal Glands

Sebaceous glands located along the edges of the eyelids, responsible for secreting a lipid-rich substance that prevents the eyelids from sticking together.

Oily Lubricant

Substances that are oily in nature used to reduce friction between surfaces in contact, commonly used in machinery and equipment maintenance.