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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

1) Calculate variable overhead spending variance and efficiency variance.

2) Compute fixed overhead spending variance and production-volume variance.

See the attached file.

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Solution Summary

Excel file contains formulas and calculations of variable overhead spending variance and efficiency variance and fixed overhead spending variance and production-volume variance.

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Please see the attached file.

NOTE: Please check the amount of actual variable cost.
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