Part C:Calculate the Variable overhead spending variance and variable overhead efficiency variance using the format shown in Figure 10.8. Clearly label each variance as favorable or unfavorable.

0. Variance Analysis for Direct Materials, Direct Labor, Variable Overhead, and Fixed Overhead. Niota overhead spending She possible explanation for this variance. VEC produces heavy duty work benches made of a specialized metal material. The master budget shows the following standards information and indicates the company expected to produce and sell 4,000 units for the month of May. Direct materials Direct labor 60 pounds per unit at $3 per pound 8 hours per unit at $14 per hour Variable manufacturing overhead 8 direct labor hours per unit at $6 per hour Niota LLC actually produced and sold 4,400 units for the month. During the month, the company purchased 300,000 pounds of material for $960,000 and used 286,000 pounds in production. A total of 30,800 labor hours were worked during the month at a cost of $462,000. Variable overhead costs totaled $195,000 for the month. With regards to fixed manufacturing overhead, the company also applies these overhead costs to products based on direct labor hours. Fixed manufacturing overhead information for the month of May appears as follows. Budgeted fixed overhead costs Budgeted direct labor hours Standard cost per direct labor hour Actual fixed overhead costs for May $ 864,000 32,000 $ 27 $ 990,000