Cirilla's Weathervane Company manufactures weathervanes. The current year operating budget is based on the production of 9,500 weathervanes with 1.20 machine-hour allowed per weathervane. Variable manufacturing overhead is anticipated to be $280,000.

Actual production was 12,000 weathervanes using 12,500 machine-hours. Actual variable costs were $23.50 per machine-hour.

Required:

Calculate the variable overhead rate and the efficiency variances.

Can you show the formulas