Two-Variance Analysis and Direct Labor Variance Marilyn, Inc., uses a standard cost system and analyzes overhead using a two-variance analysis. The following information relates to its operations in April:
Actual total cost for direct labor
$86,800
Total direct labor hours worked
14,000
Total standard labor hours for the output in April
15,000
Direct labor rate variance—unfavorable
$2,800
Actual total overhead cost
$32,000
Budgeted fixed overhead cost
$9,000
Practical capacity, in hours
12,000
Total overhead application rate per standard direct labor hour
$2.25
Note: For the analysis of the total overhead variance, set up a model similar to the one presented in Exhibit 15.17.
Required
What was Marilyn’s direct labor efficiency variance for April?
What was Marilyn’s factory overhead flexible-budget variance for April?
What was Marilyn’s production-volume variance for April?
What is the relationship between the direct labor efficiency variance and the variable overhead effi- ciency variance?