Elements of Labor and Variable Overhead Variances Chelsea Fabricating applies variable overhead to products on the basis of standard direct labor hours. Presented is selected information for last month when 10,000 units were produced.

Required Solve for items "a" through "h."

	Direct labor		Variable overhead
Actual
Standard hours/unit
Actual hours (total)	6,300		6,300
Standard rate/hour	$36.00		$24.00
Actual rate	$37.80
Flexible budget	$90,000		$60,000
Labor rate or variable overhead spending variance
Efficiency variances
Total flexible budget variance			$3,000