1. Masters Company applies overhead using machine hours and reports the following information. Compute the total variable overhead cost variance.
|
Actual machine hours used |
4,950 hours |
|
Standard machine hours |
5,000 hours |
|
Actual variable overhead rate per hour |
$4.10 |
|
Standard variable overhead rate per hour |
$4.00 |
2. Compute the variable overhead spending variance and the variable overhead efficiency variance.