Apple Inc. conducts variance analysis for its overhead costs. In June 2043, the following data is provided:

• Standard Overhead Rate: $20 per machine hour
• Actual Overhead Rate: $22 per machine hour
• Standard Machine Hours: 100,000
• Actual Machine Hours: 95,000

Requirements:

• Calculate the overhead spending variance.
• Calculate the overhead efficiency variance.
• Prepare a variance analysis report.
• Recommend actions to address unfavorable variances.