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."

Do not round answers for items b. (standard hours/unit).

	Direct labor		Variable overhead
Actual	a. $Answer		f. $Answer
Standard hours/unit	b. $Answer		b.$Answer
Actual hours (total)	6,200		6,200
Standard rate/hour	$36.00		$24.00
Actual rate	$37.80
Flexible budget	$90,000		$60,000
Labor rate or variable overhead spending variance	c. $Answer	AnswerUF	g. $Answer	AnswerUF
Efficiency variances	d. $Answer	AnswerUF	h. $Answer	AnswerUF
Total flexible budget variance	e. $Answer	AnswerUF	$2,500	F