2. Graham Company manufactures pillows. The 2019 operating budget is based on production of 25,000 pillows with.75 machine-hour allowed per pillow. Budgeted variable overhead per hour was $25. Actual production for 2019 was 27,000 pillows using 19,050 machine-hours. Actual variable overhead costs were $23 per machine-hour. Required (5 points): a. Calculate the variable overhead spending and efficiency variances. b. Explain the significance of a variable overhead spending variance and a variable overhead efficiency variance