Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches

Gladys Company provided the following information:

Standard variable overhead rate (SVOR) per direct labor hour	$3.30
Actual variable overhead rate (AVOR) per direct labor hour	$3.63
Actual direct labor hours worked (AH)	56,500
Actual production in units	10,000
Standard hours (SH) allowed for actual units produced	54,000

Required:

1. Using the columnar approach, calculate the variable overhead spending and efficiency variances.

Spending	$	Favorable
Efficiency	$	Favorable

2. Using the formula approach, calculate the variable overhead spending variance.

$

Favorable

3. Using the formula approach, calculate the variable overhead efficiency variance.

$	Unfavorable

4. Calculate the total variable overhead variance.

$	No variance