Variable Overhead Variances Smith Tax Company considers 6,000 direct labor hours or 300 tax returns its normal monthly capacity. Its standard variable overhead rate is $50 per direct labor hour. During the current month, $250,400 of variable overhead cost was incurred in working 5,500 direct labor hours to prepare 270 tax returns. Determine the following variances, and indicate whether each is favorable or unfavorable:

Determine the following variances:

Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.

Variable Overhead Variances
Actual cost:
Split cost:
Standard cost:
a. Variable overhead spending		FU
b. Variable overhead efficiency		FU