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Tamarisk Co. uses a standard job cost system with a normal capacity of 27,000 direct labour hours. Tamarisk Co. produces 13,000 units, which cost $200,000
Tamarisk Co. uses a standard job cost system with a normal capacity of 27,000 direct labour hours. Tamarisk Co. produces 13,000 units, which cost $200,000 for direct labour ( 25,000 hours), $26,000 for variable overhead, and $141,050 for fixed overhead. The standard variable overhead per unit is $2 ( 2 hours at $1 per hour), and the standard fixed overhead per unit is $10.20 (2 hours at $5.10 per hour). Calculate the variable overhead spending variance and the variable overhead efficiency variance
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