Prath, Inc, uses a standard costing system and develops its predetermined overhead rate from the annual flexible budget. The budget is based on an expected annual output of $40,000$ units requiring total $80,000$ budgeted direct labor hours. The company applies overhead based on direct labor hours. Annual budgeted overhead costs total $$560,000,$ of which $$400,000$ is variable overhead. A total of $42,000$ units were produced during the year, using $85,000$ direct labor hours. Actual overhead costs incurred for the year were total $$572,000,$ of which $$408,000$ were variable overhead costs.

$(1)$ Compute the variable overhead spending and efficiency variances. Indicate whether the variances are favorable $(F)$ or unfavorable $(U).$ Show your computation for full credit! $[$ points