Variance analysis homework problem

1. Sally’s Delivery Company reports the following information for 2013:

Actual:

	Output:	10,000 parcels picked up or delivered
	Fuel required:	1,200 Gallons
	Cost per gallon:	$3.05 per gallon

Standard:

	Fuel allowed:	0.10 gallon per parcel picked up or delivered
	Cost per gallon:	$3.10 per gallon

REQUIRED:

Calculate the following:

1)	Variable overhead variance for fuel
2)	Variable overhead price variance for fuel
3)	Variable overhead efficiency variance for fuel
4)	Actual fuel costs
5)	Flexible budget for fuel cost