1. The Haney Corporation has a standard costing system. Variable manufacturing overhead is applied on the basis of direct labor-hours. The following data are available for January:

• Actual variable manufacturing overhead: $25,500
• Actual direct labor-hours worked: 5,800
• Variable overhead rate variance: $600 Favorable
• Variable overhead efficiency variance: $2,475 Unfavorable

The standard hours allowed for January production is:

Multiple Choice

• 5,800 hours
• 5,250 hours
• 5,975 hours
• 5,425 hours

  2. The following standards for variable manufacturing overhead have been established for a company that makes only one product:

  Standard hours per unit of output		1.2	hours
  Standard variable overhead rate	$	19.80	per hour

  The following data pertain to operations for the last month:

  Actual hours		2,100	hours
  Actual total variable manufacturing overhead cost	$	40,740
  Actual output		1,600	units

  What is the variable overhead rate variance for the month?

  I will rate this answer well if it is answered completely.