Overhead: Four-Variance Analysis The following information is available from Swinney Com- pany for

Overhead: Four-Variance Analysis The following information is available from Swinney Com- pany for December:

Total factory overhead incurred

$40,000

Variable overhead expenses, incurred

$24,150

Fixed overhead expenses, budgeted

$18,000

Direct labor hours (DLH) worked

4,200

Standard direct labor hours allowed for the units manufactured

4,000

Practical capacity, in direct labor hours

4,500

Standard variable overhead rate per DLH

$5.00

Swinney uses direct labor hours to apply factory overhead.

Required Use the framework presented in Exhibit 15.7 to compute the following for the month of December:

Variable overhead spending variance.

Variable overhead efficiency variance.

Fixed overhead spending (budget) variance.

Fixed overhead production-volume variance.

Total overhead variance.