Refer to the information in QS 23-19. Compute the variable overhead spending variance and the variable overhead efficiency variance and identify each as favorable or unfavorable.

Data From QS 23-19

Mosaic Company applies overhead using machine hours and shows the following information. Compute the variable overhead variance and identify it as favorable or unfavorable.

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Actual hours of machine use 4,700 hours Standard hours of machine use (for actual production). Actual variable overhead rate per machine hour.... 5,000 hours $4.15 Standard variable overhead rate per machine hour... $4.00