1) What is the variable overhead rate variance for March Preble Company manufactures one product Its variable manufacturing overhead is applied to production based on direct labor hours and its standard cost card per unit is as follows Direct materials 4 pounds at $10 per pound $ 40 Direct labor 2 hours at $13 per hour 26 Variable overhead 2 hours at $9 per hour 18 Total standard cost per unit $ 84 The planning budget for March was based on producing and selling 29,000 units However, during March the company actually produced and sold 34,000 units and incurred the following costs Purchased 160,000 pounds of raw materials at a cost of $8 50 per pound All of this material was used in production Direct laborers worked 59,000 hours at a rate of $14 per hour Total variable manufacturing overhead for the month was $564,040 2) What is the variable overhead efficiency variance for March Preble Company manufactures one product Its variable manufacturing overhead is applied to production based on direct labor hours and its standard cost card per unit is as follows Direct materials 4 pounds at $10 per pound $ 40 Direct labor 2 hours at $13 per hour 26 Variable overhead 2 hours at $9 per hour 18 Total standard cost per unit $ 84 The planning budget for March was based on producing and selling 29,000 units However, during March the company actually produced and sold 34,000 units and incurred the following costs Purchased 160,000 pounds of raw materials at a cost of $8 50 per pound All of this material was used in production Direct laborers worked 59,000 hours at a rate of $14 per hour Total variable manufacturing overhead for the month was $564,040

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1) What is the variable overhead rate variance for March? Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on

1) What is the variable overhead rate variance for March?

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:


Direct materials: 4 pounds at $10 per pound	$	40
Direct labor: 2 hours at $13 per hour		26
Variable overhead: 2 hours at $9 per hour		18
Total standard cost per unit	$	84

The planning budget for March was based on producing and selling 29,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs:

Purchased 160,000 pounds of raw materials at a cost of $8.50 per pound. All of this material was used in production.
Direct laborers worked 59,000 hours at a rate of $14 per hour.
Total variable manufacturing overhead for the month was $564,040

2) What is the variable overhead efficiency variance for March?
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:
Direct materials: 4 pounds at $10 per pound $ 40

Direct labor: 2 hours at $13 per hour 26

Variable overhead: 2 hours at $9 per hour 18

Total standard cost per unit $ 84

The planning budget for March was based on producing and selling 29,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs:
Purchased 160,000 pounds of raw materials at a cost of $8.50 per pound. All of this material was used in production.
Direct laborers worked 59,000 hours at a rate of $14 per hour.
Total variable manufacturing overhead for the month was $564,040.