Answer:
Variable Overhead Spending Variance $140,000 Unfavorable
Variable Overhead Efficiency Variance $40,000 Favorable
Fixed Overhead Budget Variance $150,000 Unfavorable
Fixed Overhead Volume Variance $240,000 Unfavorable
Explanation:
Variable Overhead Spending Variance $140,000 Unfavorable
(Standard rate - actual rate) * actual hours
($8 - $8.5) * 275,000 hours
= $140,000 Unfavorable
Variable Overhead Efficiency Variance $40,000 Favorable
(Standard hours - Actual Hours) * Standard Rate
(280,000 hours - 275,000) * $8
= $40,000 Favorable
Fixed Overhead Budget Variance $150,000 Unfavorable
$7,875,000 - $8,025,000 = $150,000 Unfavorable
Fixed Overhead Volume Variance $240,000 Unfavorable
$7,785,000 - $8,025,000 = $240,000 Unfavorable