The following standards for variable overhead have been established for a company that makes only one product: 
The following data pertain to operations for the last month: 
-What is the variable overhead efficiency variance for the month?
Definitions:
Risk-Adjusted Rates
In capital budgeting, a rate used in place of the cost of capital to reflect especially risky projects.
Interest Rate
The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.
Certainty Equivalent NPV
A method of valuing risky projects or investments by adjusting the expected cash flows to reflect the investor's risk aversion, providing a 'risk-free' net present value.
Cost of Capital
The minimum return on investment a business necessitates to uphold its market value and entice financial inflow.
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