Attacus Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Attacus's controller. The company applies overhead on the basis of machine hours.

During the month of May, Attacus used 4,200 direct labor hours and 21,800 machine hours.
The flexible budget for the month allowed 4,000 direct labor hours and 21,000 machine hours. Actual fixed manufacturing overhead incurred was $102,000; variable manufacturing overhead incurred was $173,000.
Required
a. Calculate the variable overhead spending and efficiency variances for May.
b. Calculate the fixed overhead spending variance for May.

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Annual Budget $2,000,000 $1,200,000 May Budget $220,000 $100,000 Variable manufacturing overheac Fixed manufacturing overhead Direct labor hours Machine hours 48,000 4,000 22,000