Cost accounting

Rainy Day Company manufactures umbrellas. Fixed and variable manufacturing cost pools are allocated to each umbrella using budgeted assembly hours. Budgeted assembly time is 4 hours per unit. The following table presents the amounts for July. Actual Results Number of umbrellas produced 260 Hours of assembly time 988 Variable overhead cost per hour Variable overhead cost . , - $34,580 Fixed manufacturing overhead cost 7 . $19,800 @uired: 3. Calculate the efficiency variance for variable overhead costs. b. Calculate the rate variance for variable overhead costs. c. Calculate the rate variance for fixed overhead costs. d. Calculate the production-volume variance for fixed overhead costs. Static Budget 240 $28 $20,160