Nuevo Company produces a single product. Nuevo employs a standard cost system and uses a flexible budget to predict overhead costs at various levels of activity. For the most recent year, Nuevo used a standard overhead rate equal to $6.25 per direct labor hour. The rate was computed using expected activity. Budgeted overhead costs are $80,000 for 10,000 direct labor hours and $120,000 for 20,000 direct labor hours. During the past year, Nuevo generated the following data:

Actual production: 4,000 units

Fixed overhead volume variance: $1,750 U

Variable overhead efficiency variance: $3,200 F

Actual fixed overhead costs: $41,335

Actual variable overhead costs: $70,000

Required:

1. Determine the fixed overhead spending variance.

$

2. Determine the variable overhead spending variance.

$

3. Determine the standard hours allowed per unit of product. Round your answer to two decimal places.

hours per unit

4. Assuming the standard labor rate is $9.50 per hour, compute the direct labor efficiency variance.