Company uses standard costing Overhead information for last quarter of the year: Actual overhead inc
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Company uses standard costing
Overhead information for last quarter of the year:
Actual overhead incurred:
Fixed $10,500
Variable $66,810
Budgeted fixed overhead $11,000
Variable overhead rate per direct labor hour $5
Standard hours allowed for actual production 13,100
Actual labor hours used 13,000
A What is the variable overhead spending variance?
B What is the variable overhead efficiency variance?
(Spending variance is $1,810 unfavorable)
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