Reference no: EM13912635

Variable overhead variances In addition to the information for Acme Company in Mini-Exercises 15.1 and 15.2, the standard variable overhead rate per unit consists of $6 per machine hour and each unit is allowed a standard of 1 hour of machine time. During August, $122,760 of actual variable overhead cost was incurred for 19,800 machine hours.
In Mini Exercise 15.1, Acme Company's production budget for August is 17,500 units and includes the following component unit costs: direct materials, $8; direct labor, $10; variable overhead, $6. Budgeted fixed overhead is $32,000. Actual production in August was 18,000 units.In Mini Exercise 15.2, In addition to the information for Acme Company in Mini-Exercise 15.1, actual unit component costs incurred during August include direct materials, $8.25; direct labor, $9.45; variable overhead, $6.82. Actual fixed overhead was $33,500.

Required:

Calculate the variable overhead spending variance and the variable overhead efficiency variance.