A company applies overhead using machine hours. Additional information follows. Standard variable overhead rate Actual variable overhead rate Standard hours of machine use (for actual production) Actual hours of machine use AH = Actual Hours AVR Actual Variable Rate SH= Standard Hours SVR Standard Variable Rate Actual Variable Overhead Compute the variable overhead spending, efficiency variances and the total variable overhead variance. Identify each variance as favorable or unfavorable. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. $ Flexible Budget Variable OH $ 4.70 per machine hour $ 4.90 per machine hour 5,550 hours 5,700 hours 0 0 Saved Standard Applied Variable OH

A company applies overhead using machine hours. Additional information follows. Standard variable overhead rate Actual variable overhead rate Standard hours of machine use (for actual production) Actual hours of machine use \$ 4.70 per machine hour \$ 4.90 per machine hour 5,550 hours 5,700 hours AH= Actual Hours AVR = Actual Variable Rate SH= Standard Hours SVR = Standard Variable Rate Compute the variable overhead spending, efficiency variances and the total variable overhead variance. Identify each variance as favorable or unfavorable. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance