Bike Pedals Manufactures Bicycle Seats

Essay

Bike Pedals manufactures bicycle seats. The company budgeted to manufacture 25,000 seats in April, with 0.05 standard machine hours per seat. Total variable factory overhead was budgeted at $30,000 for April. During April, the company manufactured 30,000 seats using 1,600 machine hours. It incurred $34,000 of variable factory overhead (VOH) costs.
Required:
Determine each of the following variances. Round all answers to nearest dollar.
1. Variable overhead spending variance.
2. Variable overhead efficiency variance.
3. Variable overhead flexible-budget variance.