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Deschamp Corporation's variable manufacturing overhead is applied on the basis of direct labor-hours. The company has established the following variable manufacturing overhead standards for product O28H:
Standard direct labor-hours
2.5 hours per unit of O28H
Standard variable manufacturing overhead rate
$7.70 per hour
The following data pertain to the most recent month's operations during which 2,160 units of product O28H were made:
Actual direct labor-hours worked
5,200
Actual variable manufacturing overhead incurred
$44,980
Required:
a. What was the variable overhead spending variance for the month?
b. What was the variable overhead efficiency variance for the month?
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