The following data have been provided by Lopus Corporation:
Required: Compute the variable overhead rate variances for lubricants and for supplies. Indicate whether each of the variances is favorable (F) or unfavorable (U).

Lubricants:Variable overhead rate variance = (Actual hours × Actual rate) − (Actual hours × Standard rate)= ${{[a(7)]:#,###}} − ({{[a(6)]:#,###}} hours × ${{[a(3)]:#,##0.00}} per hour)= ${{[a(7)]:#,###}} − ${{[a(9)]:#,###}}= ${{[a(11)]:#,###}} UnfavorableSupplies:Variable overhead rate variance = (Actual hours × Actual rate) − (Actual hours × Standard rate)= ${{[a(8)]:#,###}} − ({{[a(6)]:#,###}} hours × ${{[a(4)]:#,##0.00}} per hour)= ${{[a(8)]:#,###}} − ${{[a(10)]:#,###}} = ${{[a(12)]:#,###}} Favorable