At the beginning of the year, Raja Company had the following standard cost sheet for one of its chemical products:

Direct materials (4 kg @ $2.80) ................................$11.20

Direct labour (2 hrs. @ $18.00) ................................. 36.00

Fixed overhead (2 hrs. @ $5.20) ................................ 10.40

Variable overhead (2 hrs. @ $0.70) ............................ 1.40

Standard cost per unit ............................................$59.00

Raja computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows:

a. Units produced: 79,600

b. Direct labour: 158,900 hours at $18.10

c. Fixed overhead: $831,000

d. Variable overhead: $112,400

Required:

1. Compute the variable overhead spending and efficiency variances.

2. Compute the fixed overhead spending and volume variances.