University of Miami ACC 212 - Managerial Accounting Chapter #21 - Practice Problems 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 Actual Direct Labor Hours 5,000 hours Actual Total Variable Overhead Cost $ 14,750 Required: Calculate the following variances: 1. Variable Overhead Rate Variance 2. Variable Overhead Efficiency Variance