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:

Blue-Collar Worker

A term used to describe employees who perform manual labor, typically in industrial or maintenance sectors.

Stability Strategy

A corporate strategy focused on maintaining current operations without significant growth or reduction, aiming to preserve the existing business model and market position.

Early Retirement

Early retirement is the decision to leave the workforce before the conventional retirement age, often influenced by personal savings, pension plans, or health considerations.

Task-Analysis Inventory

A systematic collection and examination of data related to the tasks performed in a specific job, aiming to understand the skills and actions required.