Mills, Inc. is a competitor of Murry, Inc. from Exercise E23-18. Mills also uses a standard cost system and provides the following information:

Static budget variable overhead .......................... $ 1,200

Static budget fixed overhead ............................. $ 1,600

Static budget direct labor hours ...................... 800 hours

Static budget number of units ........................ 400 units

Standard direct labor hours ................... 2 hours per unit

Mills allocates manufacturing overhead to production based on standard direct labor hours. Mills reported the following actual results for 2018: actual number of units produced, 1,000; actual variable overhead, $4,000; actual fixed overhead, $3,100; actual direct labor hours, 1,600?

Requirements
1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances.
2. Explain why the variances are favorable or unfavorable.

Refer in E23-18,

Murry, Inc. produced 1,000 units of the company's product in 2018. The standard quantity of direct materials was three yards of cloth per unit at a standard cost of $1.35 per yard. The accounting records showed that 2,500 yards of cloth were used and the company paid $1.40 per yard. Standard time was two direct labor hours per unit at a standard rate of $10.00 per direct labor hour. Employees worked 1,700 hours and were paid $9.50 per hour.