Banner Inc. bases its variable overhead performance report on the actual direct labor hours of the period. Data concerning the most recent year that ended on December 31 are as follows:

Budgeted direct labor hours.........12,000

Actual direct labor hours...........13,500

Standard direct labor hours allowed......13,000

Cost formula (per direct labor hour):

Indirect labor............... $0.85

Supplies.................. $0.30

Electricity.................. $0.15

Actual costs incurred:

Indirect labor............... $11,600

Supplies.................$4,000

Electricity.................$2,050

Management would like to compute the spending and efficiency variances for variable overhead in the company’s variable overhead performance report. Prepare a variable overhead performance report with both the variable overhead spending and efficiency variances. Show computations and details.