The Following Standards for Variable Manufacturing Overhead Have Been Established

question 177

Essay

The following standards for variable manufacturing overhead have been established for a company that makes only one product:
$\begin{array}{lccc}\text {Standard hours per unit of output} &\text { \( 6.9 \) hours}\\\text {Standard variable overhead rate} &\text { \( \$ 15.80 \) per hour}\end{array}$
The following data pertain to operations for the last month: $\begin{array} { l r } \text { Actual hours } & 6,100 \text { hours } \\\text { Actual total variable overhead cost } & \$ 97,600 \\\text { Actual output } & 800 \text { units }\end{array}$

Required:
a)What was the variable overhead spending variance for the month?
b)What was the variable overhead efficiency variance for the month?