Reference no: EM132615384

The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output.............. 0.6 hours

Standard variable overhead rate ................ $17.55 per hour

The following data pertain to operations for the last month:

Actual hours ................................................ 6,200 hours

Actual total variable overhead cost ............. $110,670

Actual output............................................... 10,200 units

Required:

Question a. What is the variable overhead spending variance for the month?

Question b. What is the variable overhead efficiency variance for the month?