Information from the Systems Manufacturing Company is as follows:

Required:

a. Determine the variable manufacturing overhead spending variance.

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

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Actual number of direct labor hours Actual variable manufacturing overhead cost Actual number of units produced Standard variable manufacturing overhead rate Direct labor efficiency standard Budgeted production 12,000 $145,965 2,440 units $12.10 per direct labor hour 5 hours 2,500 units