Forrest Company

Forrest Company uses a standard cost system for its production process and applies overhead based on
direct labor hours. The following information is available for August when Forrest made 4,500 units:

Standard:
DLH per unit 2.50
Variable overhead per DLH $1.75
Fixed overhead per DLH $3.10
Budgeted variable overhead $21,875
Budgeted fixed overhead $38,750

Actual:
Direct labor hours 10,000
Variable overhead $26,250
Fixed overhead $38,000

1. Using the one-variance approach, what is the total overhead variance?

2. Using the two-variance approach, what is the controllable variance?
3. Using the two-variance approach, what is the noncontrollable variance?
4. Using the three-variance approach, what is the spending variance?
5. Using the three-variance approach, what is the efficiency variance?
6. Using the three-variance approach, what is the volume variance?
7. Using the four-variance approach, what is the variable overhead spending variance?
8. Using the four-variance approach, what is the variable overhead efficiency variance?
9. Using the four-variance approach, what is the fixed overhead spending variance?
10. Using the four-variance approach, what is the volume variance?

Paramount Company
Paramount Company uses a standard cost system and prepared the following budget at normal capacity
for January:

Direct labor hours 24,000

Variable OH $48,000
Fixed OH $108,000
Total OH per DLH $6.50

Actual data for January were as follows:

Direct labor hours worked 22,000
Total OH $147,000
Standard DLHs allowed for capacity attained 21,000

Using the two-way analysis of overhead variances, what is the controllable variance for January?