The Following Information Relates to the Month of April for the Trolley

Essay

The following information relates to the month of April for The Trolley Manufacturing Company,which uses a standard cost accounting system. $$\begin{array} { | l | r | } \hline \text { Actual direct labor hours used } & 7,000 \\\hline \text { Standard hours allowed for good output } & 7,500 \\\hline \text { Fixed overhead spending variance - untavorable } & \$ 300 \\\hline \text { Actual total ou erhead } & \$ 16,000 \\\hline \text { Budgeted fixed costs } & \$ 4,500 \\\hline \text { Normal activity in hours } & 6,000 \\\hline \text { Total overhead application rate per DLH } & \$ 2.25 \\\hline\end{array}$$ Required:
(Be sure to indicate whether the variances are favorable or unfavorable. )
a.What is the variable overhead efficiency variance?
b.What is the variable overhead price variance?
c.What is the fixed production volume variance?