Gary was working away at his first attempt at variance analysis for his manufacturing company. He filled in variable$-$and fixed$-$ MOH costs where he saw fit, before actually calculating the related price, efficiency, and volume variances. Since he was focusing on the overhead costs specifically, he made note of the allocation base being used, machine hours. Here is his work so far:

Gary isn't sure if he put the right costs in the right places. There were also a couple of costs that he didn't include, because he wasn't sure if they belonged, as follows.

Actual machine hours @ budgeted variable$-$MOH rate: $\backslash (\backslash$$ $15,950\backslash )$

Flexible budget fixed$-$MOH cost: $\backslash (\backslash$$ $27,250\backslash )$

$($b$)$

$-$ Your answer is partially correct.

Using your corrected framework from part $($a$),$ determine the variable$-$ MOH price and efficiency variances. Was variable$-$ MOH under$-$or overapplied this year? By how much?

Variable$-$MOH price variance

Variable$-$MOH efficiency variance $\backslash$$