The Koski Company has established standards as follows:

Direct material	3.40 pounds at $5.40/pound = $18.36 per unit
Direct labor	2.00 hours at $9.40/hour = $18.80 per unit
Variable overhead	2.00 hours at $6.40/hour = $12.80 per unit

Actual production figures for the past year were as follows:

Units produced	640
Direct materials used	2,480 pounds
Direct materials purchased (4,400 pounds)	$24,200
Direct labor cost (1,090 hours)	$10,646
Variable overhead cost incurred	$6,867

Calculate the following:

a. The labor efficiency variance is _____.

b. The variable overhead rate variance is _____.

c. The variable overhead efficiency variance is _____.

Answer rating: 100% (QA)

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