The following standards for variable manufacturing overhead have been established for a company that makes only one product:
|
Standard hours per unit of output |
0.6 hours |
|
Standard variable overhead rate |
$17.55 per hour |
The following data pertain to operations for the last month:
|
Actual hours |
6,200 hours |
|
Actual total variable overhead cost |
$110,670 |
|
Actual output |
10,200 units |
Required:
a. What is the variable overhead spending variance for the month?
b. What is the variable overhead efficiency variance for the month?