Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLL’s standard cost card follows:

Standard Quantity

Standard Rate

Standard Unit Cost

Variable manufacturing overhead

0.6

$0.80

$0.48

During August, LLL had the following actual results:

Units produced and sold

25,200

Actual variable overhead

$

9,510

Actual direct labor hours

16,200

Required:

Compute LLL’s variable overhead rate variance, variable overhead efficiency variance, and over or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable/Overapplied and "U" for unfavorable/underapplied.)

Variable Overhead Rate Variance

$

Variable Overhead Efficiency Variance

$

Variable Overhead Spending Variance