Grover Glove Company attempts to control manufacturing overhead costs through the use of a flexible budget. Standards are set by studying historical overhead cost data, which are shown here.

Actual total overhead costs for each month of the second quarter are also shown.

Standard variable overhead: $2.20 per direct labor hour

Required:
1. Compute the variable overhead spending variance and the variable overhead efficiency variance for each month.
2. Interpretive Question: Give several reasons why the variable overhead spending variances might beunfavorable.

Transcribed Image Text:

Actual Variable Standard Hours Allowed Actual Direct Labor Hours Overhead Costs Months April May 76,000 S155,500 80,000 65,000 63,500 148,000 June