The following standards for variable manufacturing overhead have been established for a company that makes only one product:
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Standard hours per unit of output
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0.6 hours
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Standard variable overhead rate
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$17.55 per hour
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The following data pertain to operations for the last month:
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Actual hours
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6,200 hours
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Actual total variable overhead cost
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$110,670
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Actual output
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10,200 units
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Required:
a. What is the variable overhead spending variance for the month?
b. What is the variable overhead efficiency variance for the month?