VARIABLE OVERHEAD SPENDING AND EFFICIENCY VARIANCES, COLUMNAR AND FORMULA APPROACHES A company provided the following information:

Standard variable overhead rate (SVOR) per direct labor hour $4.50 Actual variable overhead rate (AVOR) per direct labor hour $4.52 Actual direct labor hours worked (AH) 36,100 Actual production in units 12,000 Standard hours allowed for actual units produced (SH) 36,000 Required:

. Using the columnar approach, calculate the variable overhead spending and efficiency variances.

. Using the formula approach, calculate the variable overhead spending variance.

. Using the formula approach, calculate the variable overhead efficiency variance.

. Calculate the total variable overhead variance.

Cornerstone Exercise