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The following standards for variable overhead have been established for a company that makes only one product:

Standard hours per unit of output4.4 hours  Standard variable overhead rate$16.00 per hour 

The following data pertain to operations for the last month: 

Actual hours8,100 hours

Actual total variable overhead cost$124,990

Actual output1,820 units 

Required:

a. What is the variable overhead rate variance for the month?

b. What is the variable overhead efficiency variance for the month?

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