Variable Overhead Spending and Efficiency Variances

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June 7th, 2024

Variable Overhead Spending and Efficiency Variances, Columnar and Formula ApproachesAretha Company provided the following information:Standard variable overhead rate (SVOR) per direct labor hour$3.70Actual variable overhead costs$206,816Actual direct labor hours worked (AH)56,200Actual production in units14,000Standard hours (SH) allowed for actual units produced56,000Required:1. Using the columnar approach, calculate the variable overhead spending and efficiency variances.Spending variance$Efficiency variance$2. Using the formula approach, calculate the variable overhead spending variance.$3. Using the formula approach, calculate the variable overhead efficiency variance.$4. Calculate the total variable overhead variance.$

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