Graybeal Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct Materials 4.3 ounces $6.00 per ounce Direct Labor 0.7 hours $21.00 per hour Variable Overhead 0.7 hours $7.00 per hour The company reported the following results concerning this product in March. Actual output 3,500 units Raw materials used in production 14,710 ounces Actual direct labor-hours 2,270 hours Purchases of raw materials 16,700 ounces Actual price of raw materials $5.80 per ounce Actual direct labor rate $21.90 per hour Actual variable overhead rate $7.30 per hour The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours.

Required:

Compute the variable overhead efficiency variance.

Compute the variable overhead rate variance.