Bondi Corporation makes automotive engines. For the most recent month, budgeted production was 1,900 engines. The standard power cost is $3.50 per machine-hour. The company's standards indicate that each engine requires 9.7 machine-hours. Actual production was 2,200 engines. Actual machine-hours were 20,380 machine-hours. Actual power cost totaled $75,950.

Required:

Determine the rate and efficiency variances for the variable overhead item power cost and indicate whether those variances are unfavorable or favorable.

(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Variable overhead rate variance Variable overhead efficiency variance