H&X Co. uses a standard job cost system with a normal capacity of 26,700 direct labour hours. H&X Co. produces 13,000 units, which cost $220,500 for direct labour (24,500 hours), $29,900 for variable overhead, and $146,250 for fixed overhead. The standard variable overhead per unit is $2 (2 hours at $1 per hour), and the standard fixed overhead per unit is $10.40 (2 hours at $5.20 per hour).

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

Variable overhead spending variance$

Favourable

Unfavourable

Neither favourable nor unfavourable

Variable overhead efficiency variance$

Unfavourable

Neither favourable nor unfavourable

Favourable