Computation of materials, labor, and overhead variances
Tuna Company set the following standard unit costs for its single product. The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available. During the current quarter, the company operated at 70% of capacity and produced 42,000 units of product; actual direct labor totaled 250,000 hours. Units produced were assigned the following standard
costs:Actual costs incurred during the current quarter follow:
Compute the variable overhead spending and efficiency variance