Wisteria Co.produces snowboards and uses a standard cost system.Variable overhead is applied using direct labor hours.Standards allowed for each unit are 5.2 hours of labor at a standard variable overhead rate of $6.60.During December,Wisteria Co.produced 3,100 snowboards.Materials purchases totaled 20,800 pounds at a total cost of $224,780.Materials usage totaled 20,970 pounds.Payroll totaled $183,660 for 17,140 hours worked.Variable overhead incurred totaled $109,140.Calculate the:
a.variable overhead rate variance.
b.variable overhead efficiency variance.

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The Answer of Wisteria Co.produces snowboards and uses a standard cost system.Variable overhead is applied using direct labor hours.Standards allowed for each unit are 5.2 hours of labor at a standard variable overhead rate of $6.60.During December,Wisteria Co.produced 3,100 snowboards.Materials purchases totaled 20,800 pounds at a total cost of $224,780.Materials usage totaled 20,970 pounds.Payroll totaled $183,660 for 17,140 hours worked.Variable overhead incurred totaled $109,140.Calculate the:
a.variable overhead rate variance.
b.variable overhead efficiency variance.