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Shawl Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product F02E specifies 5.5 direct labor-hours per unit of F02E. The standard variable overhead rate is $6.80 per direct labor-hour. During the most recent month, 1,560 units of product F02E were made, and 8,700 direct labor-hours were worked. The actual variable overhead incurred was $52,635.
Required:
Problem A. What was the variable overhead rate variance for the month?
Problem B. What was the variable overhead efficiency variance for the month?
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