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Banner Inc. variable overhead spending and efficiency varia

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Banner Inc.bases its variable overhead performance report on the actual direct labor hours of the period. Data concerning the most recent year that ended on Dec. 31 are as follows:
Budgeted direct labor hours 12,000
Actual direct labor hours 13,500
Standard direct laabor hours allowed 13,000

Cost formula (per direct labor hour):
Indirect labor $0.85
Supplies $0.30
Electricity $0.15

Actual costs incurrred:
Indirect labor $11,600
Supplies $ 4,000
Electricity $ 2,050

Management would like to compute both the spending and efficiency variances for variable overhead in the company's variable overhead performance report.
I need help preparing a variable overhead performance report with both the variable overhead spending and efficiency variances. Please show computations to help me to better understand this process.

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Your tutorial for variable overhead variance is attached.

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Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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