in December (month 24) of year 2 of operations, Big Al's produced and sold 32,675 pizzas, consisting of 30,570 meat pizzas and 2,105 veggie pizzas. The budgeted sales price for meat pizzas was $5.00, and for veggie pizzas, $5.25. The estimated production and sales during December was 31,678 meat pizzas and 2,595 veggie pizzas.

the predetermined is overhead rate 2.13; what is the variable overhead rate and efficiency variances ?. Assume that Big Al's paid $20,852 in total overhead costs, consisting of $17,002 of variable overhead and $3,850 of fixed overhead. How would these variances be understood? What might explain these variances? Would you consider them large enough to be important?