Refer to the information from QS 21-18. Compute the variable overhead spending variance and the variable overhead efficiency variance and classify each as favorable or unfavorable.

Data From QS 21-18

Mosaic Company applies overhead using machine hours and reports the following information. Compute
the total variable overhead cost variance and classify it as favorable or unfavorable.

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Actual machine hours used.... Standard machine hours (for actual production) Actual variable overhead rate per hour Standard variable overhead rate per hour. 4,700 hours 5,000 hours $4.15 $4.00