Logistics Solutions provides order fulfillment services fordot.commerchants. The company maintains warehouses that stock items carried by itsdot.comclients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours.

In the most recent month, 175,000 items were shipped to customers using 7,400 direct labor-hours. The company incurred a total of $24,790 in variable overhead costs.

According to the company's standards, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.40 per direct labor-hour.

Break down the difference computed in (1) above into a variable overhead rate variance and a variable overhead efficiency variance.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Variable overhead rate variance ___?___ F or U

Variable overhead efficiency variance ____?_____ F or U