Vallo Pharmacy operates a home delivery service with more than 2,000 housebound clients. Vallo has a fleet of vehicles and has invested in a sophisticated computerized communications system to coordinate its deliveries. Vallo has gathered the following data on last year's operations:
Vallo uses a standard costing system. During the year, the following variable overhead rate was used: $8.10 per delivery hour. The labor standard requires 0.75 hours per delivery.
Compute the variable overhead spending variance and the variable overhead efficiency variance.

Question

Vallo Pharmacy operates a home delivery service with more than 2,000 housebound clients. Vallo has a fleet of vehicles and has invested in a sophisticated computerized communications system to coordinate its deliveries. Vallo has gathered the following data on last year's operations:
  Vallo uses a standard costing system. During the year, the following variable overhead rate was used: $8.10 per delivery hour. The labor standard requires 0.75 hours per delivery.
Compute the variable overhead spending variance and the variable overhead efficiency variance.

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The Answer of Vallo Pharmacy operates a home delivery service with more than 2,000 housebound clients. Vallo has a fleet of vehicles and has invested in a sophisticated computerized communications system to coordinate its deliveries. Vallo has gathered the following data on last year's operations:
  Vallo uses a standard costing system. During the year, the following variable overhead rate was used: $8.10 per delivery hour. The labor standard requires 0.75 hours per delivery.
Compute the variable overhead spending variance and the variable overhead efficiency variance.

Vallo Pharmacy Operates a Home Delivery Service with More Than