The following standards for variable overhead have been established for a company that makes only one product:
Standard hours per unit of output4.4 hours Standard variable overhead rate$16.00 per hour
The following data pertain to operations for the last month:
Actual hours8,100 hours Actual total variable overhead cost$124,990 Actual output1,820 units
Required:a.What is the variable overhead rate variance for the month?
b.What is the variable overhead efficiency variance for the month?