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Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product D80D specifies 6.0 direct labor-hours per unit
Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product D80D specifies 6.0 direct labor-hours per unit of D80D. The standard variable overhead rate is $6.20 per direct labor-hour. During the most recent month, 1,400 units of product D80D were made and 8,500 direct labor-hours were worked.
The actual variable overhead incurred was $55,290.
Required:
a. What was the variable overhead rate variance for the month?
b. What was the variable overhead efficiency variance for the month?
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