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Vitko Corporation makes automotive engines. For most current month, budgeted production was 6,000 engines. The standard power cost is $8.80 per machine hour. The company's standard indicates that each engine requires 6.1 machine-hours. Actual productions were 6,400 engines. Actual machine-hours were 38,730 machine-hours. Actual power cost totaled $350,628.
Determine the rate and efficiency variances for the variable overhead item power cost and point out whether those variances are unfavorable or favorable.
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