Duvet Company manufactures pillows. The 2020 operating budget was based on production of 20,000 pillows, with 0.75 machine-hours allowed per pillow. Budgeted variable overhead per hour was $25. Actual production for 2020 was 18,000 pillows using 13,000 machine-hours. Actual variable costs were $26 per machine-hour.

Calculate the following:

1. The budgeted variable overhead for 2020
2. The variable overhead spending vanance
3. The variable overhead efficiency variance

a. Calculate the budgeted variable overhead for 2020.

Budgeted variable overhead for 2020

1. Calculate the variable overhead spending variance. (Complete all input fields.) Variable overhead spending vanance Favorable or Unfavorable? Amount
2. Calculate the variable overhead efficiency variance. (Complete all input fields.)