A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.

Standard hours per unit of output	4.40	machine-hours
Standard variable overhead rate	$11.55	per machine-hour

The following data pertain to operations for the last month:

Actual hours	8,800	machine-hours
Actual total variable manufacturing overhead cost	$95,910
Actual output	1,900	units

What is the variable overhead efficiency variance for the month?

$5,082 U

$7,293 F

$2,832 U

$7,293 U

2.

Epley Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	12.0 pounds	$11.5 per pound
Direct labor	0.8 hours	$36.00 per hour
Variable overhead	0.8 hours	$17.00 per hour

In July the company produced 3,470 units using 13,880 pounds of the direct material and 2,896 direct labor-hours. During the month, the company purchased 14,640 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $103,840 and the actual variable overhead cost was $47,220.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The labor rate variance for July is: