1. The following standards for variable manufacturing overhead have been established for a company that makes only one product:

• Standard hours per unit of output1.6hours
• Standard variable overhead rate$11.55per hour

The following data pertain to operations for the last month:

• Actual hours4,900hours
• Actual total variable manufacturing overhead cost$58,310
• Actual output3,000units

What is the variable overhead efficiency variance for the month?

a)$1,680 F

b)$1,155 U

c)$1,190 F

d) $1,190 U

2) Zacher Corporation makes a product with the following standards for direct labor and variable overhead:

Standard Quantity or Hours-------------------Standard Price or Rate-------------------------Standard Cost Per Unit

Direct labor 0.3 hours $24.00 per hour $7.20 Variable overhead 0.3 hours $5.00 per hour $1.50

In February the company's budgeted production was 6,900 units, but the actual production was 7,000 units. The company used 1,980 direct labor-hours to produce this output. The actual variable overhead cost was $10,296. The company applies variable overhead on the basis of direct labor-hours.

The variable overhead efficiency variance for February is:

a) $600 F

b) $624 F

c)$600 U

d) $624 U

3) The following data have been provided by Mathews Corporation:

Budgeted production 6,900 units

Standard machine-hours per unit 9.4 machine-hours

Standard lubricants rate $1.20per machine-hour

Standard supplies rate $1.00per machine-hour

Actual production 7,000 units

Actual machine-hours (total) 66,230 machine-hours

Actual lubricants cost (total) $78,100

Actual supplies cost (total) $66,536

Lubricants and supplies are both elements of variable manufacturing overhead.

The variable overhead rate variance for lubricants is closest to:

a)$860 F

b)$1,376 F

c)$516 U

d)$1,376 U