Exercise 11-22 Straightforward Computation of Overhead Variances (LO 11-5)

Crystal Glassware Company has the following standards and flexible-budget data.

Standard variable-overhead rate	$	4.00	per direct-labor hour
Standard quantity of direct labor		2	hours per unit of output
Budgeted fixed overhead	$	112,000
Budgeted output		28,000	units

Actual results for April are as follows:

Actual output		19,000	units
Actual variable overhead	$	228,000
Actual fixed overhead	$	105,000
Actual direct labor		55,000	hours

Required: Use the variance formulas to compute the following variances.

1. Variable overhead efficiency variance