The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output

6.9 hours

Standard variable overhead rate

$15.80 per hour

The following data pertain to operations for the last month:

Actual hours

6,100 hours

Actual total variable overhead cost

$97,600

Actual output

800 units

Required:

a) What was the variable overhead spending variance for the month? (AH AR) - (AH SR)

b) What was the variable overhead efficiency variance for the month?SR (AH - SH)