Question - Harley Davidson makes motorcycle engines in its Milwaukee plant. For the most recent month, budgeted production was 3,300 engines. The standard power cost is $9.20 per machine-hour. The company's standards indicate that each engine requires 2.1 machine-hours. Actual production was 3,400 engines. Actual machine-hours were 7,160 machine-hours. Actual power cost totaled $61,815.
a) What is the rate variances for the variable overhead item power cost?
b) What is the efficiency variance of the variable overhead item power cost?