You Have Just Been Hired as the New Executive Assistant

Essay

You have just been hired as the new executive assistant to the manager of the Eastern Division of Global Manufacturing. You have been given the following incomplete records concerning manufacturing overhead for last year: The company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard direct labor-hours (DLHs).
Required:
a. Compute the variable overhead rate variance and indicate whether it was favorable or unfavorable.
b. Compute the fixed overhead volume variance and indicate whether it was favorable or unfavorable.