Manufacturing Overhead Variances Problem #1 - Variable Overhead Variances Standards (Budget) Variable Overhead Rate Standard: $3 per direct labor hour Variable Overhead Efficiency Standard: 04 labor hours per unit Actual Actual Production 135,000 units = 0.03 Actual Direct Labor Hours 5,000 hours = 2.95 Actual Total Variable Overhead Cost $ 14,750 Required: Calculate the following variances: 1. Variable Overhead Rate Variance 2. Variable Overhead Efficiency Variance