The following figures represent 100% capacity for Starr Manufacturing:

Units produced	20,000
Direct labor hours expected	12,000
Variable manufacturing overhead costs (based on a standard of $3/hour)	$36,000

Starr Manufacturing normally produces at 100% capacity. During the month of October, the company started and completed 18,000 units of product, using variable manufacturing overhead costs of $32,025. The company used 10,500 direct labor hours in October instead of the 10,800 hours expected for the activity level achieved.

Based on this information, the variable manufacturing overhead spending (price) variance is:

Group of answer choices

a. $525 unfavorable

b. $900 favorable

c. $525 favorable

d. $900 unfavorable

2. Based on this information, the variable manufacturing overhead efficiency variance is:

Group of answer choices

a. $900 unfavorable

b. $525 unfavorable

c. $525 favorable

d. $900 favorable