A company applies overhead using machine hours. Additional information follows.

Standard variable overhead rate

Actual variable overhead rate

Standard hours of machine use $($for actual production$)$

Actual hours of machine use

$AH=$ Actual Hours

AVR $=$ Actual Variable Rate

$SH=$ Standard Hours

SVR $=$ Standard Variable Rate

$$5\mathrm{.}80$ per machine hour

$$6\mathrm{.}00$ per machine hour

$6,100$ hours

$6,250$ hours

Compute the variable overhead spending, efficiency variances and the total variable overhead variance. Identify each variance as favorable or unfavorable.

Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.