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Branch Corp. uses a standard cost system to account for the costs of its one product. Variable overhead is applied using direct labor hours. Standards

Branch Corp. uses a standard cost system to account for the costs of its one product. Variable overhead is applied using direct labor hours. Standards allowed for each unit are 2.8 hours of labor at a variable overhead rate of $12. During November, Branch Corp. produced 2,300 units. Payroll totaled $97,790 for 7,150 hours worked. Variable overhead incurred totaled $87,920.

a.

Calculate the variable overhead rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).)

b.

Calculate the variable overhead efficiency variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).)

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