Question: Overhead Variances At the beginning of the year, Gaillard Company had the following standard cost sheet for one of its chemical products:
![2072_22.png](https://secure.tutorsglobe.com/CMSImages/2072_22.png)
Gaillard computes its overhead rates using practical volume, which is 144,000 units. The actual results for the year are as follows:
(a) Units produced: 143,400;
(b) Direct labor: 286,400 hours at $18.10;
(c) FOH: $1,235,900; and
(d) VOH: $259,300.
Required: 1. Compute the variable overhead spending and efficiency variances.
2. Compute the fixed overhead spending and volume variances.