The Following Information Is for the Third Quarter of This

question 6

Essay

The following information is for the third quarter of this year: $\begin{array} { | l | r r| rr| l | } \hline & { \text { Planned } } &&{ \text { Actual } } \\\hline \text { Production } & 92,000 & \text { units } & 87,000 & \text { units } \\\hline \text { Direct labor hours } & 506,800 & \begin{array} { l } \text { DL } \\\text { hrs }\end{array} & 380,000 & \begin{array} { l } \text { DL } \\\text { hrs }\end{array} \\\hline \begin{array} { l } \text { Fixed manufacturing } \\\text { overhead }\end{array} & \$ 205,000 & & \$ 182,400 & \\\hline \begin{array} { l } \text { Variable } \\\text { manufacturing } \\\text { overhead }\end{array} & \$ 910,000 & & \$ 841,500 & \\\hline \begin{array} { l } \text { Standard direct labor } \\\text { hour per unit }\end{array} & 5.5 & & & \\\hline\end{array}$ Required:
Calculate the following three overhead variances:
1. Overhead volume variance
2. Overhead efficiency variance
3. Overhead spending variance

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Definitions:

Oligocene

A geologic epoch of the Paleogene Period, occurring about 33.9 to 23 million years ago, noted for major changes in mammalian evolution.

Eocene

The Eocene is a geological epoch that lasted from about 56 to 33.9 million years ago, during which warm climates prevailed and early mammals diversified following the extinction of the dinosaurs.

Continental Drift

The theory that the Earth's continents have moved over geological time relative to each other, thus appearing to have "drifted" across the ocean bed.

Earth's Surface

The outermost layer of the Earth comprised of land and water where various life forms exist.