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

Lure is in the business of producing fishing line. Line allocates overhead by the use of labor hours. Fixed overhead consists of $30,000 of janitor salaries, $20,000 of machine depreciation, and $50,000 in plant foreman salary and plans on using 2,000 labor hours. The lure machine is expected to use 400 labor hours. At the end of the period, Lure finds that actual fixed overhead is $19,000 and budgeted overhead is $19,800.

REQUIRED:

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

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