[lily_baby25]

Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows:

Direct material: standard quantity 20 pounds standard cost per bag $8
Direct labor: standard quantity 0.1 hrs standard cost per bag $1.10
Variable overhead: 0.1hrs standard cost per bag $0.40
The company had no beginning inventories of any kind on January 1. Variable overhead is applied to production on the basis of standard direct-labor hours. During January, the company recorded the following activity:
Production of Fastgro: 4000 bags
Direct materials purchased: 85,000 pounds at a cost of $32,300
Direct-labor worker: 390 hours at a cost of $4,875
Variable overhead incurred: $1,475
Inventory of direct materials on January 31: 3,000 pounds

The total variance (both rate and efficiency)for variable overhead for January is:
I have been working on this problem for a week and am not getting anywhere close to the correct answer. Any help would be appreciated.

[lily_baby25]

I have figured out the rate variance to be 585U. I have applied the labor efficiency variance formula SR(AH-SH). I can't seem to figure out how to get the efficiency variance.