Please see the picture above. Can you explain why standard hour for variable overhead(40000 hours) is not equal to standard hour for direct labor(24000 hours)? I though standard hour for direct labor, variable overhead and fixed overhead should be the same.

what is budgeted direct labour hour? is it the same as standard hour? if not, why use it to calculate variable overhead rate?(formula: variable overhead standard hour variable overhead rate)

Question: Actual direct manufacturing labour-hours is 25,500 hours. Budgeted direct manufacturing labor-hour is 40000 hours. Budgeted variable manufacturing overhead is $480000. Variable manuf, overhead efficiency variance is $18,000. Required: Compute Standard variable manufacturing overhead rate and Standard direct manufacturing labor hours allowed for production, Answer: Standard variable manufacturing overhead rate= $480,000 - 40,000. = $12 per direct manuf. labour-hour.. Variable manuf, overhead efficiency variance of $18,000 - $12 = 1,500 excess hours.- Actual hours - Excess hours = Standard hours allowed 25,500 - 1,500 = 24,000 hours