Calculate variable overhead spending variance for the period

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Question - Pointe Claire Company applies overhead based on direct labour hours. Two direct labour hours are required for each unit of product. Planned production for the period was set at 8,600 units. Manufacturing overhead is budgeted at $129,000 for the period (20% of this cost is fixed). The 16,570 hours worked during the period resulted in the production of 8,100 units. The variable manufacturing overhead cost incurred was $105,300 and the fixed manufacturing overhead cost was $28,400.

Required -

1. Calculate the variable overhead spending variance for the period.

2. Calculate the variable overhead efficiency (quantity) variance for the period.

Reference no: EM132794326

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