The Following Information Was Compiled by Baker Company Compute the Following Variances:
A

question 96

Essay

The following information was compiled by Baker Company: $\begin{array}{ll}\text { Exp ected volume of production } & 50,000 \text { units } \\\text { Actual level of production } & 47,500 \text { units } \\\text { Budgeted fixed overhead } & \$ 400,000 \\\text { Actual fixed overhead } & \$ 415,000 \\\text { Variable overhead rate p er direct- lab or } & \$ 18 \\\text { hour } &\\\text { Actual variable overhead }&\$790,000\\\text { Standard direct- lab or hours allowed }\\\text { per unit produc ed } & 1.0 \text { hour } \\\text { Standard direct- lab or rate per hour } & \$ 32.00 \\\text { Actual direct- lab or hours of input } & 46,500 \text { hours } \\\text { Actual direct- lab or rate per hour } & \$ 33.00\end{array}$ Compute the following variances:
a. Variable factory overhead flexible- budget variance
b. Fixed factory overhead flexible- budget variance
c. Fixed factory overhead production- volume variance

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Definitions:

Challenging Goal

A target or objective that is ambitious and requires effort and perseverance to achieve.

Firm Deadlines

Strict or unchangeable due dates by which tasks or objectives must be completed.

Own Deadlines

Self-imposed timelines or due dates set by individuals to complete tasks or projects.

Own Deadlines

Self-imposed timelines or due dates for personal projects or tasks, aimed at increasing productivity and time management.