The following data reflect the current month’s activity for Sills, Inc.:

Variable overhead is applied based on standard direct labor-hours allowed.
Required Compute the labor and variable overhead price and efficiency variances.

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Actual total direct labor Standard labor-hours allowed for actual output (flexible budget) Actual hours worked Direct labor price variance Actual variable overhead Standard variable overhead rate per standard direct labor-hour $364,000 26,000 27,000 $13,000 U $88,400 $3.50