Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 8 sq ft. $ 0.63 per sq. ft. $ 5.04 Direct labor 0.26 hr. $ 10.50 per hr. 2.73 Variable manufacturing overhead (based on direct labor hours) 0.26 hr. $ 1.50 per hr. 0.39 Fixed manufacturing overhead $308,040 906,000 units) 0.34 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,220,000 Number of square feet of plastic used 11,200,000 Cost of plastic purchased and used $ 6,720,000 Number of labor hours worked 305,000 Direct labor cost $ 3,233,000 Variable overhead cost $ 540,000 Fixed overhead cost $ 361,000 Required:

Calculate Parker Plastics variable overhead rate and efficiency variances and its over- or underapplied variable overhead.