Calculate the variable overhead rate variance

Willow Inc. has provided the following information:

Standards: Per unit
Direct materials 10 lb @ $3.60/lb $ 36.00
Direct labor 2 hours @ $24.50/hour 49.00
Variable overhead 2 hours @ $18/hour 36.00
Fixed overhead 20.00
Total $ 141.00

Budgeted production = 7,400 units

Actual results
Materials 76,460 lbs $ 273,451
Direct labor 14,450 actual hours $ 345,230
Variable overhead $ 266,640
Fixed overhead $ 144,870
Units produced 7,500 units

a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting “Favorable”, “Unfavorable”, or “None” for no effect (i.e., zero variance).)
c. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting “Favorable”, “Unfavorable”, or “None” for no effect (i.e., zero variance).)
e. Calculate the variable overhead rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting “Favorable”, “Unfavorable”, or “None” for no effect (i.e., zero variance).)
f. Calculate the variable overhead efficiency variance. (Indicate the effect of variance by selecting “Favorable”, “Unfavorable”, or “None” for no effect (i.e., zero variance).)

Solution:

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