Review the data from Premium, Inc., given in Exercise 23-18. Consider the following additional information:

Premium allocates manufacturing overhead to production based on standard direct labor hours. Premium reported the following actual results for 2012: actual variable overhead, $1,900; actual fixed overhead, $3,300.
Requirements
1. Compute the variable and fixed overhead variances. Use Exhibits 23-11 and 23-12 as guides.
2. Explain why the variances are favorable orunfavorable.

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Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units $1,600 $3,200 1,600 hours 800