The following standards for variable overhead have been established for a company that makes only one product:
Standard hours per unit of output4.4 hours Standard variable overhead rate$16.00 per hour
The following data pertain to operations for the last month:
Actual hours8,100 hours
Actual total variable overhead cost$124,990
Actual output1,820 units
Required:
a. What is the variable overhead rate variance for the month?
b. What is the variable overhead efficiency variance for the month?