Question: Different management levels in Bates, Inc., require varying degrees of managerial accounting information. Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows: Budgeted output units 3,200 units Budgeted fixed manufacturing overhead $20,000 Budgeted variable manufacturing overhead $5 per direct labor hour Budgeted direct manufacturing labor hours 2 hours per unit Fixed manufacturing costs incurred $26,000 Direct manufacturing labor hours used 7,200 Variable manufacturing costs incurred $35,600 Actual units manufactured 3,400
Required: a) Compute variable overhead spending variance
b) Compute variable overhead efficiency variance
c) Compute fixed overhead spending variance
d) Compute fixed overhead production-volume variance