Alden Company uses a twovariance analysis for overhead variances. Practical capacity is defined as 28 setups and 28,000 machine hours to make 5,600 units per year. The data selected for 2016 are the following:
Budgeted Fixed Factory Overhead:  
Setting  $ 61,600  
Other  148.000  
ps  209,600  
Total factory overhead incurred  ps  482,000  
Variable Factory Overhead Rate:  
by configuration  ps  450  
per hour machine  ps  7  
Total standard machine hours allowed for units manufactured  31,000  hours  
Machine hours actually worked  34,000  hours  
Actual total number of configurations  24  
Required: 
1. 
Compute (a) the total overhead variance, (b) the overall efficiency variance, and (c) the total flexible budget variance for 2016. 
2. 
Assume that the company includes all installation costs as variable factory overhead. Therefore, the total budgeted fixed overhead is $148,000 and the standard variable overhead rate per configuration is $2,650. What are (a) overhead, (b) efficiency, and (c) variances? of the flexible budget for the year?
