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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:
a. What is the variable overhead spending variance for the month?
b. What is the variable overhead efficiency variance for the month?
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