A company applies overhead using machine hours. Additional information follows.Using the following direct labor information, calculate the direct labor rate variance and the direct labor efficiency variance. Indicate

whether each variance is favorable or unfavorable.

Standard rate of direct labor

Standard hours of direct labor for actual units produced

Actual hours of direct labor used

$AH=$ Actual Hours

SH $=$ Standard Hours

AR $=$ Actual Rate

$SR=$ Standard Rate

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

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{.}50$ per machine hour

$$5\mathrm{.}70$ per machine hour

$5,950$ hours

$6,100$ 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.