3. Blue Jay Company is a manufacturer of suits. The cost of each suit consists of three variable costs (direct materials cost, direct manufacturing labor cost, and manufacturing overhead cost) and one fixed manufacturing overhead cost. Variable manufacturing overhead is allocated based on direct manufacturing labor hours per suit. Each suit is budgeted to take 5 labor hours. The budgeted variable manufacturing cost per labor hour is $14. The budgeted number of suits to be manufactured during the month was 1,000 suits. The actual direct manufacturing labor hours for the month were 5,564 hours for 1,070 suits started and completed. The actual variable manufacturing overhead cost was $89,024 for the month. There was no beginning or ending inventory of suits.

Compute the variable overhead spending variance and the variable overhead efficiency variance.

Must show work for full credit