E9-11 Calculating Variable Manufacturing Overhead Variances [LO 9-5]

Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLLs standard cost card follows:

	Standard Quantity	Standard Rate	Standard Unit Cost
Variable manufacturing overhead	0.6	$0.80	$0.48

During August, LLL had the following actual results:

Units produced and sold		25,100
Actual variable overhead	$	9,500
Actual direct labor hours		16,100

Required: Compute LLLs variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for Favorable/Overapplied and "U" for Unfavorable/Underapplied.)