Billy Clifford Manufacturing applies variable manufacturing overhead to production on the basis of \($15\) per direct labor hour. The labor efficiency standard is five hours per finished unit. Last month the company produced 12,000 units and used 62,000 direct labor hours. Actual variable overhead cost incurred totaled $920,000.

Required:

a. Determine the variable manufacturing overhead spending variance.

b. According to the appropriate standard, how many direct labor hours should it have taken to produce the 12,000 units?

c. Determine the diréct labor efficiency variance in hours.

d. Determine the variable manufacturing overhead efficiency variance in dollars.