Variable overhead rate variance:
Actual direct labor-hours worked = 9,500
Actual variable overhead incurred = $58,750
Standard direct labor-hours per unit = 4.0 hours
Standard variable overhead rate = $6.10 per hour
Variable overhead rate variance = (Actual direct labor-hours worked x Standard variable overhead rate) - Actual variable overhead incurred
Variable overhead rate variance = (9,500 hours x $6.10) - $58,750
Variable overhead rate variance = $57,950 - $58,750
Variable overhead rate variance = -$800 (U)
Variable overhead efficiency variance:
Standard direct labor-hours per unit = 4.0 hours
Actual direct labor-hours worked = 9,500
Actual production = 2,400 units
Standard direct labor-hours for actual production = 2,400 units x 4.0 hours = 9,600 hours
Variable overhead efficiency variance = (Standard direct labor-hours for actual production - Actual direct labor-hours worked) x Standard variable overhead rate
Variable overhead efficiency variance = (9,600 hours - 9,500 hours) x $6.10
Variable overhead efficiency variance = 100 hours x $6.10
Variable overhead efficiency variance = $610 (U)