Reference no: EM132785410

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

Standard hours per unit of output            6.9 hours
Standard variable overhead rate            $15.80 per hour

The following data pertain to operations for the last month:

Actual hours                                         6,100 hours
Actual total variable overhead cost                $97,600
Actual output                                            800 units

Required:

Problem a) What was the variable overhead spending variance for the month? (AH ´ AR) - (AH ´ SR)

Problem b) What was the variable overhead efficiency variance for the month? SR (AH - SH)