Sifford Corporation, Which males landing gears, has provided the following data for a recent month: Budgeted production:8,400 Gears, Standard machine-hours per gear: 9.4 machine-hours, Budgeted supplies cost: $2.40 per machine-hour, Actual production: 8,500 gears, Actual machine-hours: 79,030 machine-hours, Actual supplies cost (total):$210,524.
Required: Determine the rate and efficiency variances for the variable overhead item supplies and indicate wheather those variables are favorable or unfavorable.