lynwood company produces surge protectors. to help control costs, lynwood employs a standard costing system and uses a flexible budget to predict overhead costs at various levels of activity. for the most recent year, lynwood used a standard overhead rate of $18 per direct labor hour. the rate was computed using practical capacity. budgeted overhead costs are $396,000 for 18,000 direct labor hours and $540,000 for 30,000 direct labor hours. during the past year, lynwood generated the following data: (a) actual production: 100,000 units; (b) fixed overhead volume variance: $20,000 u; (c) variable overhead efficiency variance: $18,000 f; (d) actual fixed overhead costs: $200,000; and (e) actual variable overhead costs: $310,000.
