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Preble company manufactures one product. It's variable manufacturing overhead is applied to production basedon direct labor-hours and its standard cost card per unit as follows:
inputs	Standard quantity or hours (1)	standard price or rate (2)	standard cost (1)*(2)
Direct materials	5 pounds	$8.00 per pound	40
direct labor	2 hours	$14 per hours	28
variable overhead	2 hours	$5 per hours	$10
total standard cost per unit			78
The planning budger for march was based on producing and selling 25000 units. However, during March the company actually produced and sold 30,000 units and incurred the
following costs:
a) purchased 160,00 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.
b) diret laborers worked 55,000 hours at a rate of $15.00 per hour.
c) Total variable manufacturing overhead for the month was $280,500. 15) What is the variable overhead efficiency variance for March? Variable overhead efficiency variance for March SR (AH - SH) Actual quantity of direct labor used (a) Standard quantity allowed (b) Variance (a) - (b) =(c ) Standard variable overhead rate/hour (d) **Variable overhead efficiency variance (c ) x (d) ** If actual quantity of direct labor used exceed standard quantity of direct labor allowed, variable overhead efficiency variance would be unfavorable and vice versa.

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