Deschamp Corporation”s variable manufacturing overhead is applied on the basis of direct labor hours. The company has established the following variable manufacturing overhead standards for product O28H:
|
Standard direct labor hours |
2.5 hours per unit of O28H |
|
Standard variable manufacturing overhead rate |
$7.70 per hour |
The following data pertain to the most recent month’s operations during which 2,160 units of product O28H were made:
|
Actual direct labor hours worked |
5,200 |
|
Actual variable manufacturing overhead incurred |
$44,980 |
Required:
a. What was the variable overhead spending variance for the month?
b. What was the variable overhead efficiency variance for the month?