Calculate:

1 The labour usuage or efficiency variance.

2 The Variable overhead spending variance ( variable overhead is allocated using direct labour as the basis)

3 The Variance Overhead efficiency variance (variable overhead is allocated using direct labour as the basis)

Data for Q3,4,5,6,7 and 8 The Vernon Company has developed the following standards for one of their products. Direct materials: 20 pounds x $3 per pound Direct labor: 15 hours x $8 per hour Variable overhead: 15 hours x $2 per hour Budgeted volume for November was 10,000 units. The following activity occurred during November: Units Produced: 10,000 units Materials used: 210.000 pounds at $3.20 per pound Direct labor: 140,000 hours at $7.50 per hour Actual variable OH: $287,000