Industries produced 4,500 tables last month. The standard variable manufacturing overhead (MOH) rate used by the company is $23 per machine hour. Each table requires 0.4

machine hours. Actual machine hours used last month were 1,850, and the actual variable MOH rate last month was $23.50.

Part 1

Requirements

1. Calculate the variable overhead rate variance.

2. Calculate the variable overhead efficiency variance.

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Part 1

Requirement 1. Calculate the variable overhead rate variance.

Begin by determining the formula for the variable overhead rate variance, then compute the variable overhead rate variance. (Enter the variance as a positive number. Enter amounts in the formula to the nearest cent and then the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).)

								Variable overhead
		(		-		)	=	rate variance
		(		-		)	=