Actual variable overhead is $20,000; budgeted variable overhead is $17,000; and applied variable overhead is $15,000. The variable overhead spending variance is ; and the variable overhead efficiency variance is A) $2,000 unfavorable; $3,000 unfavorable B) $2,000 unfavorable; $5,000 unfavorable C) $3,000 unfavorable; $2,000 unfavorable D) $3,000 unfavorable; $5,000 unfavorable E) none of the above Suppose that a company has two sources of financing: $2 million of long-term bonds paying 9 percent interest and $6 million of common stock, which is considered to be of average risk (with a 6 percent premium). If the company's tax rate is 40 percent and the rate of interest on long-term government bonds is 3 percent, the company's weighted average cost of capital is A) 7.50% B) 8.10% C) 14.4% D) 15.0% E) none of the above