BOOK Deliveries made Direct labor Variable Overhead Variances, Service Company Rostand Inc. operates a delivery service for over 70 restaurants. The corporation has a fleet of vehicles and has invested in a sophisticated, computerized communication system to coordinate is deliverles. Rostand has gathered the following actual data on last year's delivery operations: 38,600 31,000 direct labor hours @ $14.00 Actual variable overhead $157,700 Rostand employs a standard costing system. During the year, a variable overhead rate of $5.10 per hour was used. The labor standard requires 0,80 hour per delivery Required: 1. Compute the standard hours allowed for actual deliveries made last year. direct labor hours 2. Compute the variable overhead spending and efficiency variances, Enter amounts as positive numbers and select Favorable or Unfavorable. Spending variance Favorable Efficiency variance Unfavorable Foto Check My W 1. Standard direct labor hours allowed (applied) - Actual deliveries x Standard direct labor hours 2. Spending variance: Actual VOH - Applied VOH; or Actual VOH - (SVORAH) Or: (AVOR - SVOR) AH Efficiency variance: Applied VOH - Budgeted VOH Or: (AH-SH) SVOR Check your work. The total variable overhead variance is the sum of the two variances or Total VOH Verner Atol VOH - Annlin VOH