Direct Labor and Variable Overhead Variance Relationships: A company applies variable overhead on the basis of 150 percent of its direct labor costs. This period, actual variable overhead was $11,420. There was a $900 favorable efficiency variable for variable overhead. There was a $725 unfavorable price vari- ance for direct labor. During the period, 1.420 direct labor-hours were worked at a standard rate of $5 per hour..

Required: Prepare a variable cost variance analysis for direct labor and variable overhead.