Deschamp Corporation's variable manufacturing overhead is applied on the basis of direct labor-hours. The company has established the following variable manufacturing overhead standards for product O28H:
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Standard direct labor-hours
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2.5 hours per unit of O28H
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Standard variable manufacturing overhead rate
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$7.70 per hour
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The following data pertain to the most recent month's operations during which 2,160 units of product O28H were made:
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Actual direct labor-hours worked
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5,200
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Actual variable manufacturing overhead incurred
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$44,980
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Required:
a. What was the variable overhead spending variance for the month?
b. What was the variable overhead efficiency variance for the month?