1. Identify which, if any, of the variable overhead variances we learned that Company DEF has and explain why.

2. What should the company focus on improving related to its variable overhead?

3. What is the company doing well related to its variable overhead?

Output units Machine hours (MH) Variable overhead cost per MH Actual 12,700 units 4,400 MH $8.20 per MH Budgeted 12,700 units 3,500 MH $10.00 per MH