Sedona Company set the following standard costs for one unit of its product for 2017.

Direct material (30 Ibs. @ $2.20 per Ib.)$66.00Direct labor (20 hrs. @ $4.00 per hr.)80.00Factory variable overhead (20 hrs. @ $2.20 per hr.)44.00Factory fixed overhead (20 hrs. @ $1.10 per hr.)22.00Standard cost$212.00

The $3.30 ($2.20 + $1.10) total overhead rate per direct labor hour is based on an expected operating level equal to 65% of the factory's capacity of 52,000 units per month. The following monthly flexible budget information is also available.

Operating Levels (% of capacity)Flexible Budget60%65%70%Budgeted output (units)31,20033,80036,400Budgeted labor (standard hours)624,000676,000728,000Budgeted overhead (dollars)Variable overhead$1,372,800$1,487,200$1,601,600Fixed overhead743,600743,600743,600Total overhead$2,116,400$2,230,800$2,345,200

During the current month, the company operated at 60% of capacity, employees worked 591,000 hours, and the following actual overhead costs were incurred.

Variable overhead costs$1,326,000Fixed overhead costs798,000Total overhead costs$2,124,000.

1.Compute thevariable overhead spending and efficiency variances.

2.Compute thevariable overhead spending and efficiency variances.