Palek Company Has Adopted the Following Standards: Palek's January

Essay

Palek Company has adopted the following standards: Palek's January budget was based on normal volume of 40,000 standard labor hours.During January,Palek produced 7,900 units with records indicating the following data: Assuming Palek uses the four-variance method of analyzing factory overhead,compute the following variances for the month of January and indicate whether each is favorable or unfavorable:
a.Variable overhead spending variance
b.Variable overhead efficiency variance
c.Fixed overhead spending variance
d.Fixed overhead production-volume variance