Shawl Corporation’s variable overhead is applied on the basis of
direct labor-hours. The standard cost card for product F02E specifies
5.5 direct labor-hours per unit of
F02E. The standard variable overhead rate is $6.80 per direct
labor-hour. During the most recent month, 1,560 units of product F02E
were made and 8,700 direct labor hours were worked.
The actual variable overhead incurred was $52,635.
A. What was the variable overhead rate variance for the month?
B. What was the variable overhead efficiency variance for the month?