Chapter 11, Problem 26E

The following data are the actual results for Marvelous Marshmallow Company for October.

Standard cost and budget information for Marvelous Marshmallow Company follows:

Required:

1. 1. Use any of the methods explained in the chapter to compute the following variances. Indicate whether each variance is favorable or unfavorable, where appropriate.
   1. a.      Variable-overhead spending variance.
   2. b.      Variable-overhead efficiency variance.
   3. c.       Fixed-overhead budget variance.
   4. d.      Fixed-overhead volume variance.
2. 2. Build a spreadsheet: Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change if the following information changes: actual output was 9,100 cases, and actual variable overhead was $395,000.