## Answers

Variable overhead spending variance = $ 5,244 Favorable

Variable overhead efficiency variance = $ 3,206 Unfavorable

Working

Variable Overhead Spending Variance | ||||||

( | Standard Cost | - | Actual Cost | ) | ||

( | $ 52,987.20 | - | $ 47,743.00 | ) | ||

5244.2 | ||||||

Variance | $ 5,244.20 | Favourable-F |

.

Variable Overhead Efficiency Variance | ||||||

( | Standard Hours | - | Actual Hours | ) | x | Standard Rate |

( | 17662.4 | - | 18731 | ) | x | $ 3.00 |

$ (3,205.80) | ||||||

Variance | $ 3,2056 | Unfavourable-U |

.

Standard DATA for | 11620 | Units | |

Quantity (SQ) | Rate (SR) | Standard Cost | |

[A] | [B] | [A x B] | |

Variable Overhead | ( 1.52 Hour x 11620 Units)=17662.4 Hour | $ 3.00 | $ 52,987.20 |

.

Actual DATA for | 11620 | Units | |

Quantity (AQ) | Rate (AR) | Actual Cost | |

Variable Overhead | 18731 | $ 2.55 | $ 47,743.00 |

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