Exercise 11-26 Straightforward Computation of Overhead Variances

Exercise 11-26 Exercise 11-26 Straightforward Computation of Overhead VariancesThe following data are the actual results for Marvelous Marshmallow Company for October.Actual output ………………………………………………………………………………………………………………… 9000 casesActual variable overhead …………………………………………………………………………………………………. $405,000Actual fixed overhead ……………………………………………………………………………………………………… $122,000Actual machine time ………………………………………………………………………………………………………. 40500 machine hours(LO 5) The following data are the actual results for Marvelous Marshmallow Company for October.Standard variable-overhead rate ………………………………………………………………………… $9.00 per machine hourStandard quantity of machine hours ……………………………………………………………………. 4 hours per case of marshmallowsBudgeted fixed overhead ………………………………………………………………………………….. $120,000 per monthBudgeted output …………………………………………………………………………………………….. 10,000 cases per monthRequired: 1. Use any of the methods explained in the chapter to compute the following variances. Indicate whether each variance is favorable or unfavorable, where appropriate. a. Variable-overhead spending variance. b. Variable-overhead efficiency variance.c. Fixed-overhead budget variance.d. Fixed-overhead volume variance.2. Build a spreadsheet: Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change if the following information changes: actual output was 9,100 cases, and actual variable overhead was $395,000.I only need the second requirement, I will double the money with the tip feature only if you answer is acceptable, (timely, correct, and original).

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