At the beginning of the year, MB Company had the following standard cost sheet for one of its plastic products. MB planned to produce 4,000 units for the year.

Direct materials (4 pounds at $2.50 per pound) $10.00

Direct labor (3 hours at $20 per hour) 60.00

Standard prime cost per unit $70.00

MB uses a standard costing system.

During the year, a variable overhead rate of $3.75 per direct labor hour was used.

Actual results:

Actual number of units produced: 4,200

Materials purchased: 18,000 pounds at $2.65 per pound

Materials used in production: 16,700 pounds

Direct labor: 12,000 hours at $21

Actual variable overhead: $42,000

Compute the following variances. Remember to label your answers with an F or U.

1. Variable overhead spending variance

2. Variable overhead efficiency variance