Task: Overhead analysis. Armstrong Corporation uses standard costing. The following information is for 2004:
| Static-budget machine-hours |
33,000 |
| Fixed overhead budget cost |
$4,950,000 |
| Fixed overhead actual cost |
$4,500,000 |
| Variable overhead actual cost |
$96,000,000 |
| Variable overhead rate per machine-hour |
$300 |
| Actual machine-hours used |
30,000 |
| Budgeted machine-hours allowed for actual output |
35,000 |
Question 1) Calculate variable overhead spending variance and efficiency variance.
Question 2) Compute fixed overhead spending variance and production-volume variance.