E 10-3B: Variable Overhead Variances:

Marshfield Tax Company considers 8,000 direct labor hours or 400 tax returns its normal monthly capacity. Its standard variable overhead rate is $4 per direct labor hour. During the current month, $31,500 of variable overhead cost was incurred in working 7,500 direct labor hours to produce 360 units of product.

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:

$Answer Split cost: $Answer Standard cost: $Answer

a. Variable overhead spending $Answer Answer

b. Variable overhead efficiency $Answer Answer