Refer to the information from QS 8-18. Compute the variable overhead spending variance and the variable overhead efficiency variance and classify each as favorable or unfavorable.

QS8-18

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