(LO 16-5) 16-39. Variable Cost Variances The records of Norton, Inc., show the following for July: Standard labor-hours allowed per unit of output Standard variable overhead rate per standard direct labor-hour Good units produced Actual direct labor-hours worked Actual total direct labor Direct labor efficiency variance Actual variable overhead Required Compute the direct labor and variable overhead price and efficiency variances. Page 693 1.2 $45 60,000 73,600 $2,370,000 $48,000 U $3,072,000 Direct labor: Actual Costs Price Variance Actual Inputs at Standard Price Efficiency Variance Variable overhead: Flexible Budget (Standard Inputs Allowed for Good Output)