Creger Corporation, which makes landing gears, has provided the following data for a recent month:
Required: Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variances are favorable or unfavorable.

Variable overhead rate variance = (Actual hours × Actual rate) − (Actual hours × Standard rate)= ${{[v(6)]:#,###}} − ({{[v(5)]:#,###}} hours × ${{[v(3)]:#,###.00}} per hour)= ${{[v(6)]:#,###}} − ${{[v(8)]:#,###}}= ${{[v(9)]:#,###}} FavorableStandard machine-hours allowed for the actual output = {{[v(2)]:#,###.0}} hours per unit × {{[v(4)]:#,###}} units = {{[v(11)]:#,###}} hoursVariable overhead efficiency variance = (Actual hours − Standard hours) × Standard rate= ({{[v(5)]:#,###}} hours − {{[v(11)]:#,###}} hours) × ${{[v(3)]:#,###.00}} per hour= ({{[v(12)]:#,###}} hours) × ${{[v(3)]:#,###.00}} per hour= ${{[v(13)]:#,###}} Unfavorable