### Variances – The following data are the actual results for Marvelous Marshmallow Company for October

The following data are the actual results for Marvelous Marshmallow Company for October. Actual output ……………………………………………………………………………………………………………….. 9,000 cases Actual variable overhead …………………………………………………………………………………………………. $405,000 Actual fixed overhead ……………………………………………………………………………………………………… $122,000 Actual machine time ………………………………………………………………………………………………………. 40,500 machine hours Standard cost and budget information for Marvelous Marshmallow Company follows: Standard variable-overhead rate ………………………………………………………………………… $9.00 per machine hour Standard quantity of machine hours ……………………………………………………………………. 4 hours per case of marshmallows Budgeted fixed overhead ………………………………………………………………………………….. $120,000 per month Budgeted output …………………………………………………………………………………………….. 10,000 cases per month Required: Use any of the methods explained in the chapter to compute the following variances. Indicate whether each variance is favorable or unfavorable, where appropriate. Variable-overhead spending variance. Variable-overhead efficiency variance. Fixed-overhead budget variance. Fixed-overhead volume variance. Build…

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