Slim Shady Company (SSC) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from SSC’s standard cost card follows:

During August, SSC had the following actual results

Required:

Compute SSC’s variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead.

Transcribed Image Text:

Variable manufacturing overhead Standard Quantity Standard Rate Standard Unit Cost $0.80 $0.40 0.5