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

Essay

Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product D80D specifies 6.3 direct labor-hours per unit of D80D. The standard variable overhead rate is $5.80 per direct labor-hour. During the most recent month, 1,000 units of product D80D were made and 6,400 direct labor-hours were worked.The actual variable overhead incurred was $40,920.Required:a. What was the variable overhead rate variance for the month?b. What was the variable overhead efficiency variance for the month?