Spindle Company manufactures pillows. The 2020 operating budget was based on production of 30,000 pillows, with 0.25 machine-hours allowed per pillow. Budgeted variable overhead per hour was $26.

Actual production for 2020 was 29,000 pillows using 7,150 machine-hours. Actual variable costs were $30 per machine-hour.

Calculate the following:

a. The budgeted variable overhead for 2020

b. The variable overhead spending variance

c. The variable overhead efficiency variance