Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLL€™s standard cost card follows:

During August, LLL had the following actual results:
Units produced and sold .... 25,000
Actual variable overhead .... $9,490
Actual direct labor hours .... 16,000

Required:
Compute LLL€™s variable overhead rate variance, variable overhead efficiency variance, and over or under-applied variableoverhead.

Transcribed Image Text:

Standard Quantity Standard Rate Standard Unit Cost Variable manufacturing overhead 0.6 $0.80 $0.48