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) 10 sq ft. $ 0.82 per sq. ft. $ 8.20 Direct labor 0.25 hr. $ 10.20 per hr. 2.55 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 1.40 per hr. 0.35 Fixed manufacturing overhead $270,600 902,000 units) 0.30 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,020,000 Number of square feet of plastic used 11,000,000 Cost of plastic purchased and used $ 8,800,000 Number of labor hours worked 300,000 Direct labor cost $ 3,000,000 Variable overhead cost $ 400,000 Fixed overhead cost $ 357,000 Required: Calculate Parker Plastics variable overhead rate and efficiency variances and its over- or underapplied variable overhead.