Gantt Textiles Inc.incurred actual variable overhead expenses of $50 000 in the current year for the production of 6000 units.Variable overhead was applied at a rate of $3.25 per direct labour hour and 2 direct labour hours were budgeted for each unit.The company used 16 000 direct labour hours for production.
Required: Compute each of the following variances.Indicate whether the variance is favourable (F)or unfavourable (U).
A. Variable cverhead 5pencing variance
B. Variable averhead efficiency variance

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The Answer of Gantt Textiles Inc.incurred actual variable overhead expenses of $50 000 in the current year for the production of 6000 units.Variable overhead was applied at a rate of $3.25 per direct labour hour and 2 direct labour hours were budgeted for each unit.The company used 16 000 direct labour hours for production.
Required: Compute each of the following variances.Indicate whether the variance is favourable (F)or unfavourable (U).
A. Variable cverhead 5pencing variance
B. Variable averhead efficiency variance