Question - Simmons Industries produced 3,000 tables last month. The standard variable manufacturing overhead (MOH) rate used by the company is $18 per machine hour. Each table requires 0.5 machine hours. Actual machine hours used last month were 1,550 and the actual variable MOH rate last month was $17.00.
Requirements -
1. Calculate the variable overhead rate variance.
2. Calculate the variable overhead efficiency variance.