Question: The following standards for variable overhead have been established for a company that makes only one product: Standard hours per unit of output 4.5 hours

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

Standard hours per unit of output 4.5 hours
Standard variable overhead rate $ 16.00 per hour

The following data pertain to operations for the last month:

Actual hours 8,200 hours
Actual total variable overhead cost $ 125,000
Actual output 1,810 units

Required:

a. What is the variable overhead rate variance for the month?

b. What is the variable overhead efficiency variance for the month?

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