Problem - Company uses standard costing.
Overhead information for last quarter of the year:
Actual overhead incurred:
Fixed $10,500
Variable $66,810
Budgeted fixed overhead $11,000
Variable overhead rate per direct labor hour $5
Standard hours allowed for actual production 13,100
Actual labor hours used 13,000
A. What is the variable overhead spending variance?
B. What is the variable overhead efficiency variance?