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Sedona Company set the following standard costs for one unit of its product for 2015.

Direct material (30 Ibs. @ $2.20 per Ib.)		$	66.00
Direct labor (10 hrs. @ $4.60 per hr.)			46.00
Factory variable overhead (10 hrs. @ $3.00 per hr.)			30.00
Factory fixed overhead (10 hrs. @ $1.50 per hr.)			15.00
Standard cost		$	157.00

The $4.50 ($3.00 + $1.50) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 65,000 units per month. The following monthly flexible budget information is also available.

		Operating Levels (% of capacity)
Flexible Budget			65%				70%				75%
Budgeted output (units)			42,250				45,500				48,750
Budgeted labor (standard hours)			422,500				455,000				487,500
Budgeted overhead (dollars)
Variable overhead		$	1,267,500			$	1,365,000			$	1,462,500
Fixed overhead			682,500				682,500				682,500
Total overhead		$	1,950,000			$	2,047,500			$	2,145,000

During the current month, the company operated at 65% of capacity, employees worked 400,000 hours, and the following actual overhead costs were incurred.

Variable overhead costs		$	1,224,000
Fixed overhead costs			730,000
Total overhead costs		$	1,954,000

1. Compute the variable overhead spending and efficiency variances Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied)