Kibodeaux Corporation makes a product with the following standard costs: Picture The company budgeted for production of 3,300 units in June, but actual production was 3,400 units. The company used 33,240 liters of direct material and 320 direct labor-hours to produce this output. The company purchased 35,900 liters of the direct material at $4.90 per liter. The actual direct labor rate was $22.70 per hour and the actual variable overhead rate was $2.70 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for June is:

The variable overhead rate variance for June is:

Inputs Direct matrial Direct labor Variable overhead Standard Quantity or Hours 9.8 liters 0.1 hours 0.1 hours Standard Price or Rate $5.00 per liter $22.00 per hour 3.00 per hour Standard Cost Per Unit $49.00 $2.20 $0.30