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): Calcagno Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product B47W:

): Calcagno Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product B47W:

Standard direct labor-hours per unit of B47W. 3.0

Standard variable overhead rate$9.40 per hour

The following data pertain to the most recent month's operations during which 520 units of product B47W were made:

Actual direct labor-hours worked.1,400

Actual variable overhead incurred..$13,580 Required: a. What was the variable overhead rate variance for the month? Indicate whether it is favorable or unfavorable. (Variable overhead rate variance=(AHxAR)-(AHxSR)) b. What was the variable overhead efficiency variance for the month? Indicate whether it is favorable or unfavorable. (Variable overhead efficiency variance=SR(AH-SH))

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