Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches
Aretha Company provided the following information:
| Standard variable overhead rate (SVOR) per direct labor hour |
$3.70 |
| Actual variable overhead costs |
$206,816 |
| Actual direct labor hours worked (AH) |
56,200 |
| Actual production in units |
14,000 |
| Standard hours (SH) allowed for actual units produced |
56,000 |
Required:
1. Using the columnar approach, calculate the variable overhead spending and efficiency variances.
| Spending variance |
$ |
|
| Efficiency variance |
$ |
|
2. Using the formula approach, calculate the variable overhead spending variance.
3. Using the formula approach, calculate the variable overhead efficiency variance.
4. Calculate the total variable overhead variance.