Benjamin Inc

Essay

Benjamin Inc.uses a standard cost system and has the following information regarding the labor and overhead used in the production of widgets.Standard labor input is 2 hours per unit.The variable overhead rate is $8 per hour;fixed overhead is budgeted to be $100,000 on budgeted production of 8,000 widgets.During August,Benjamin Inc.paid its workers $161,670 for 16,800 hours.Actual variable overhead incurred totaled $133,560,and actual fixed overhead totaled $98,956.Benjamin Inc.produced 8,600 widgets during August.Calculate the:
a.variable overhead rate variance.
b.variable overhead efficiency variance.
c.fixed overhead spending variance.