The expected activity of the paper-making plant of Leventhal Paper Company was 45,000 machine-hours per month. Practical capacity was 60,000 machine-hours per month. The standard machine-hours allowed for the actual output achieved in January were 54,000. The budgeted fixed factory overhead items were as follows: 

Depreciation, equipment.....................$340,000 

Depreciation, factory building.................64,000 

Supervision................................................47,000 

Indirect labour...................................... .234,000 

Insurance..................................................18,000 

Property taxes..........................................17,000 

Total......................................................$720,000

Because of unanticipated scheduling difficulties and the need for more indirect labour, the actual fixed factory overhead was $751,000.

1. Using practical capacity as the denominator for applying fixed factory overhead, prepare a summary analysis of fixed overhead variances for January. 

2. Using expected activity as the denominator for applying fixed factory overhead, prepare a summary analysis of fixed overhead variances for January. 

3. Explain why some of your variances in requirements 1 and 2 are the same and why some differ.