Overthead Variances, Two-And Three-Yariance Analyses Oerstman, inc, uses a standard costing system and develops its overthesd rates from the current annual budget. The budget is based on an expected annual output of 124,000 units requiring 496,000 direct labor hours. (Practical capacity is 516,000 hours.) Annual budgeted overhead costs total $758,880, of which $555,520 is foxed overhead. A total of 119,300 units using 494,000 direct labor hours were produced during the year, Actual variable overhead conts for the year were $240, soo, and actual fixed overhead costs were $555,450. Required: 1. Compute overhead variances using a two- variance analysis. Budget Variance Volume Variance \$ $.

1. Overthead Variances, Two-And Three-Yariance Analyses Oerstman, inc, uses a standard
costing system and develops its overthesd rates from the current annual budget. The budget is
based on an expected annual output of 124,000 units requiring 496,000 direct labor hours.
(Practical capacity is 516,000 hours.) Annual budgeted overhead costs total $758,880, of which
$555,520 is foxed overhead. A total of 119,300 units using 494,000 direct labor hours were
produced during the year, Actual variable overhead conts for the year were $240, soo, and actual
fixed overhead costs were $555,450. Required: 1. Compute overhead variances using a two-
variance analysis. Budget Variance Volume Variance $ $