Tarlight Glassware Company following standards and flexible-budget data.
Tarlight Glassware Company has the following standards and flexible-budget data. Standard variable-overhead rate $ 6.00 per direct-labor hour Standard quantity of direct labor 2 hours per unit of output Budgeted fixed overhead $ 96,000 Budgeted output 24,000 units Actual results for February are as follows: Actual output 19,000 units Actual variable overhead $ 304,000 Actual fixed overhead $ 92,000 Actual direct labor 45,000 hours Required: Use the variance formulas to compute the following variances. (Indicate the effect of each variance by selecting “Favorable” or “Unfavorable”. Select “None” and enter “0” for no effect (i.e., zero variance).) Variable overhead spending variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance