The Cost Department of Claffy Manufacturing Company prepared the following flexible budget for Department 2 for February:

Factory overhead is charged to production at the rate of $4.30 per standard hour of processing time. The overhead rate was determined on the basis of 100% capacity utilization, considered to be normal. At the end of the month, cost records showed 7,600 units of product were manufactured during 5,840 processing hours, and actual factory overhead was as follows:

Required:
Prepare a departmental factory overhead variance report that shows the spending variance and the variable efficiency variance for each item of factory overhead, along with a single departmental volume variance. For each item of expense that contains both a fixed and a variable portion, assume that the actual fixed portion is equal to the budgeted fixed portion and that the balance of the actual expense is variable. Indicate whether the variances are favorable or unfavorable.

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7.200 5,400 8,000 6,000 Production quantity based on standard.. Processing time in hours at standard.. Capacity utilization at standard... Variable overhead: 6,400 4,800 80% 90% 100% Indirect labor.W.ww. Manufacturing supplies... Repairs... Heat, power, and light $1,600 1,800 2,000 2,400 1,000 300 1,920 800 240 2,160 900 270 Total variable overhead S 4560 5130 5,700 Fixed overhead: Superintendence... Indirect labor Manufacturing supplies Maintenance …艹 Heat, power, and light.. Machinery depreciation 4,000 4,000 4,000 6,200 2,000 1,100 1,400 4,500 900 6,200 2,000 1,100 1,400 4,500 900 6,200 2,000 1,100 1,400 4,500 900 Total fixed overhead Total budgeted factory overhead $20,100 $20,100 20,100 $24,660 Superintendence. Indirect labor Manufacturing supplies Repairs.... Maintenance Heat, power, and light. Machinery depreciation Insurance and taxes 4,000 8,120 4,325 1,050 1,080 1,725 4,500 970 Total actual factory overhead. $25.77