The Following Information Relates to Joplin Company for the Period

question 15

Essay

The following information relates to Joplin Company for the period just ended: $\begin{array}{ll}\text { Standard variable overhead rate per hour } & \$ 1 \\\text { Standard fixed-overhead rate per hour } & \$ 2 \\\text { Planned monthly activity } & 40,000 \text { machine hours } \\\text { Actual production completed } & 82,000 \text { units } \\\text { Standard machine processing time } & \text { Two units per hour } \\\text { Actual variable overhead } & \$ 37,000 \\\text { Actual total overhead } & \$ 121,000 \\\text { Actual machine hours worked } & 40,500\end{array}$
All of the company's overhead is variable or fixed in nature.
Required:
A. Calculate the spending and efficiency variances for variable overhead.
B. Calculate the budget and volume variances for fixed overhead.

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Definitions:

Physiological Need

Basic, essential requirements necessary for survival, such as food, water, and shelter, often described in the context of Maslow's hierarchy of needs.

Drive-Reduction Theory

A theory of motivation that posits that human beings are motivated to reduce internal tensions caused by unmet biological needs, such as hunger or thirst.

Sandwich Shop

A food establishment that specializes in preparing and selling sandwiches and often other related food items.

Environmental Stimuli

External factors or conditions that affect the behavior and processes of an organism.