The following standards for variable overhead have been established for a company that makes only one product:

Question:

The following standards for variable overhead have been established for a company that makes only one product:
Standard hours per unit of output 4.9 hours
Standard variable overhead rate $15.00 per hour
The following data pertain to operations for the last month:
Actual hours 8,600 hours
Actual total variable overhead cost $125,040
Actual output 1,740 units
What is the variable overhead rate variance and efficiency variance, and are they favorable or unfavorable?