1. The Cyclone Company has established standards as follows:

Variable manufacturing overhead: 2 hours per unit @ $5 per hour = $10 per unit

Actual production figures for the past year are given below.

Units produced 600 units

Direct labor cost $9,240 for 1,100 hours

Variable overhead cost incurred $5,720

The company applies variable manufacturing overhead to products on the basis of standard direct labor-hours.

1. What is the variable overhead rate variance?
2. What is the variable overhead efficiency variance?