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)	6,200		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		UF		UF
Efficiency variances		UF		UF
Total flexible budget variance		UF	$2,500	F