Answer:
The correct answer is $8,316( Unfavorable) and $10,500 ( Favorable).
Explanation:
According to the scenario, the computation of the given data are as follows:
Actual Variable OH AH × SVOR SH × SVOR
$222,816 $57,200×$3.75 = $214,500 $60,000×$3.75 = $225,000
Variable OH spending variance Variable OH efficiency variance
$214,500 - $22,816) $225,000 - $214,500
= $8,316( Unfavorable) = $10,500 ( Favorable)
Hence, Variable OH spending variance = $8,316( Unfavorable)
And Variable OH efficiency variance = $10,500 ( Favorable)
