PA11. LO 8.4 Reddy Corporation has collected the following data for the month of June: Page 3 of 4 OpenStax Principles of Accounting, Volume 2: Managerial Accounting Chapter 8: Standard Costs and Variances Actual total factory overhead incurred $61,250 Budgeted fixed factory overhead costs $42,000 Activity level, in direct labor hours 15,000 Actual direct labor hours 18,000 Standard hours for output this period 17,000 Total factory overhead rate $ 4.35 What is the variable overhead efficiency variance? Solution PA12. LO 8.4 ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc. had budgeted $27,000 for fixed overhead. Actual machine hours were 5,000. Standard hours for units made were 4,800. The standard variable overhead rate was $4.10. What is the variable overhead rate variance? Solution PA13. LO 8.5 Recompute the variances from EA13 using $0.725 as the standard cost of the material and $14 as the standard labor cost per hour. How has your explanation of the variances changed? Solution