Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 lbs. @ $ 6.80/lb.

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 hrs. @ $14.00/hr.

Variable overhead (based on machine hours) . . . . . . . . . . 1.5 hrs. @ $ 4.50/hr. the following activity took place:

2,910 machine hours were worked.

11,400 lbs. of raw material were purchased for inventory at a total cost of $80,940.

1,900 cases of finished product were produced.

9,260 lbs. of raw material were used.

4,420 labor hours were worked at an average rate of $14.35 per hour.

$12,513 actual variable overhead costs were incurred.

Required:

Calculate the following variances and provide plausible explain results

Variable overhead spending variance.

Variable overhead efficiency variance.