Variable overhead costs variances. The variable portion of Good Food Corporations flexible budget for overhead is given below:

Machine hours

Overhead Rate per hr. 10,000 18,000 24,000

Utilities P1.40 P14,000 P25,000 P33,600

Supplies 0.20 2,000 3,600 4,800

Maintenance 1.20 12,000 21,600 28,800

Miscellaneous 0.80 8,000 14,400 19,200

Last month, the company worked for 16,000 machine hours and incurred the following costs

Utilities P 21,000

Supplies 3,500

Maintenance 19,700

Miscellaneous 12,400

Required:

1. Compute the variable overhead spending variance.
2. Compute the variable overhead efficiency variance.