ClearView Company manufactures clear plastic CD cases. It applies variable overhead based on the number of machine hours used. Information regarding ClearView’s overhead for the month of December follows:

During December, ClearView had the following actual results.

Required:
Compute ClearView’s variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead.

Variable manufacturing overhead Standard Quantity Standard Rate Standard Unit Cost 0.1 machine hours per case $0.50 per machine hour $0.05