Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher

Exercise 18

Overhead Cost and Variance Relationships
Fargo Corporation reported a $200 unfavorable price variance for variable overhead and a $2,000 unfavorable price variance for fixed overhead. The flexible budget had $128,400 variable overhead based on 21,400 direct labor-hours; only 21,200 hours were worked. Total actual overhead was $217,400. The number of estimated hours for computing the fixed overhead application rate totaled 22,000 hours.
Required
a. Prepare a variable overhead analysis like the one in Exhibit 16.10.
b. Prepare a fixed overhead analysis like the one in Exhibit 16.13.