Metz Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product M70T specifies 7.7 direct labor-hours per unit of M70T. The standard variable overhead rate is $6.30 per direct labor-hour. During the most recent month, 400 units of product M70T were made and 3,000 direct labor-hours were worked.
The actual variable overhead incurred was $18,000.
Required:
a. What was the variable overhead rate variance for the month?
b. What was the variable overhead efficiency variance for the month?

Question

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The Answer of Metz Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product M70T specifies 7.7 direct labor-hours per unit of M70T. The standard variable overhead rate is $6.30 per direct labor-hour. During the most recent month, 400 units of product M70T were made and 3,000 direct labor-hours were worked.
The actual variable overhead incurred was $18,000.
Required:
a. What was the variable overhead rate variance for the month?
b. What was the variable overhead efficiency variance for the month?

Metz Corporation's Variable Overhead Is Applied on the Basis of Direct