The best cost driver for a electronic tech company has for variable factory overhead in the assembly department is machine hours. During October, the company budgeted 690,000 machine hours and $4,000,000 for its plant's assembly department. The actual variable overhead incurred was $4,300,000, which was related to 700,000 machine hours.
Do not round until your final answers. Round your answers to the nearest dollar.
1. Determine the variable overhead spending variance and if it is favorable or unfavorable.
2. Determine the variable overhead efficiency variance and if it is favorable or unfavorable.