Vath Corporation, which makes landing gears, has provided the following data for a recent month: Budgeted production Standard machine-hours per gear Budgeted supplies cost Actual production Actual machine-hours Actual supplies cost (total) 8,400 gears 3.1 machine-hours $3.00 per machine-hour 8,880 gears 27,592 machine-hours $77,667 Required: Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable. Variable overhead rate variance Variable overhead efficiency variance