Calculating the Variable Overhead Spending and Efficiency Variances

Standish Company manufactures consumer products and provided the following information for the month of February:

Units produced	131,700
Standard direct labor hours per unit	0.2
Standard variable overhead rate (per direct labor hour)	$3.40
Actual variable overhead costs	$88,650
Actual hours worked	26,800

Required:

1. Calculate the variable overhead spending variance using the formula approach. (If you compute the actual variable overhead rate, carry your computations out to five significant digits and round the variance to the nearest dollar.) $ - Select your answer -FavorableUnfavorableItem 2

2. Calculate the variable overhead efficiency variance using the formula approach. $ - Select your answer -FavorableUnfavorableItem 4

3. What if 26,100 direct labor hours were actually worked in February? What impact would that have had on the variable overhead spending variance? - Select your answer -Would be largerWould be smallerNo impactItem 5 - Select your answer -FavorableUnfavorableItem 6

What impact would that have had on the variable overhead efficiency variance? - Select your answer -Would be largerWould be smallerNo impactItem 7 - Select your answer -FavorableUnfavorableItem 8