Below is the information i was given to complete the problem. I cant figure out how to compute variable overhead price and efficiency variances. Im not sure how this violates the honor code, if it does please explain so i can 

correct it.

 

Evansville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 110,000 liters at a 

budgeted price of $150 per liter this year. The standard direct cost sheet for one liter of the preservative follows.

 

Direct materials(2 pounds @ $9)$18Direct labor(0.5 hours @ $34)17

Variable overhead is applied based on direct labor hours. The variable overhead rate is $70 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $35 per unit. All non-manufacturing costs are fixed and are budgeted at $1.7 million for the coming year.

At the end of the year, the costs analyst reported that the sales activity variance for the year was $480,000 unfavorable.

The following is the actual income statement (in thousands of dollars) for the year.

Sales revenue$15,838Less variable costs Direct materials1,738Direct labor1,760Variable overhead3,480Total variable costs$6,978Contribution margin$8,860Less fixed costs Fixed manufacturing overhead1,100Non-manufacturing 

costs1,280Total fixed costs$2,380Operating profit$6,480

 

During the year, the company purchased 186,000 pounds of material and employed 45,400 hours of direct labor.

 

Compute the variable overhead price and efficiency variances.