Manufacturing Overhead Variances Problem #1 - Variable Overhead Variances 1 Standards (Budget) Variable Overhead Rate Standard: Variable Overhead Efficiency Standard: $3 per direct labor hour .04 labor hours per unit Actual Actual Production Actual Direct Labor Hours Actual Total Variable Overhead Cost 135,000 units 5,000 hours $ 14,750 Required: Calculate the following variances: 1. Variable Overhead Rate Variance 2. Variable Overhead Efficiency Variance I