Line Company has the following information related to its production. Use the information below to answer the required questions.

Line is in the business of producing fishing line. Line allocates overhead by the use of machine hours. Variable overhead consists of $50,000 of indirect labor and $15,000 in indirect materials and plans on using 130,000 total hours of machine hours. The line machine is expected to use 12,500 machine hours. At the end of the period, Line finds that they have used 12,000 machine hours with a variable overhead rate of $0.51.

REQUIRED:

1) What is the Total Variance in the MOH for the Line?

2) What is the Overhead Rate Variance in the MOH costs?

3) What is the Efficiency Variance in the MOH costs?

Total Variance
Actual Overhead - Predicted Allocated Overhead
Price Variance
Actual Overhead - Budgeted Overhead
Quantity Variance
Budgeted Overhead - Predicted Allocated Overhead