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Speedy Pharmacy operates a home delivery service with more than 2,000 home-bound clients. Speedy has a fleet of vehicles and

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I. Variable overhead rate variance = (SR-AR)*AH

= {133650/(22000*0.75) - 145000/15000}*15000

= $23500 Unfavorable

II. Variable overhead efficiency variance = (21000*0.75 - 15000)*8.1

= $6075 Favorable

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