Sedona Company set the following standard costs for one unit of its product for 2013.
| Direct material (15 Ibs. @ $3.20 per Ib.) | $ | 48.00 | ||
| Direct labor (10 hrs. @ $9.50 per hr.) | 95.00 | |||
| Factory variable overhead (10 hrs. @ $4.60 per hr.) | 46.00 | |||
| Factory fixed overhead (10 hrs. @ $2.20 per hr.) | 22.00 | |||
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| Standard cost | $ | 211.00 | ||
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The $6.80 ($4.60 + $2.20) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory’s capacity of 56,000 units per month. The following monthly flexible budget information is also available. |
| Operating Levels (% of capacity) | ||||||||||||
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| 70% | 75% | 80% | ||||||||||
| Budgeted output (units) | 39,200 | 42,000 | 44,800 | |||||||||
| Budgeted labor (standard hours) | 392,000 | 420,000 | 448,000 | |||||||||
| Budgeted overhead (dollars) | ||||||||||||
| Variable overhead | $ | 1,803,200 | $ | 1,932,000 | $ | 2,060,800 | ||||||
| Fixed overhead | 924,000 | 924,000 | 924,000 | |||||||||
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| Total overhead | $ | 2,727,200 | $ | 2,856,000 | $ | 2,984,800 | ||||||
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During the current month, the company operated at 70% of capacity, employees worked 371,000 hours, and the following actual overhead costs were incurred. |
| Variable overhead costs | $ | 1,716,000 | ||
| Fixed overhead costs | 1,015,200 | |||
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| Total overhead costs | $ | 2,731,200 | ||
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Compute the variable overhead spending and efficiency variances. (Round “AVR” and “SVR” to 2 decimal places.)