Budgeted variable factory overhead costs: Budgeted production in units: Budgeted time: per unit Allocation base: direct labor hours $354,000 60,000 units 2 direct labor hours 58,600 units Actual production in units: Actual variable factory overhead costs incurred: $338,500 Actual direct labor hours used: hours 119,000 1. CALCULATE VARIABLE FACTORY OVERHEAD ALLOCATED: Allocated: 2. CALCULATE VARIABLE FACTORY OVERHEAD SPENDING (PRICE) VARIANCE : Price variance: Circle Unfavorable one: Favorable 3. CALCULATE VARIABLE FACTORY OVERHEAD EFFICIENCY (QUANTITY) VARIANCE