Fireable overhead variances Morgan tax company consider $6000$ direct labor hours or $300$ tax returns it's normal month capacity it's standard variable overhead rate is six dollars per direct labor hour during the current month $$30,400$ of variable overhead cost for incurred in working $5600$ direct labor hours to prepare $270$ tax returns determine the following variances and indicate whether each is favorable or unfavorable variable overhead variances actual cost split cost standard cost