Sieverville Machine Company has developed the following standard factory overhead costs for each SX unit assembled in Department 6, based on a monthly capacity of 80,000 direct labor hours:

During August, 38,000 units of SX were actually produced. Actual direct labor hours totaled 77,500, and actual factory overhead totaled $700,000.
Required:
Determine the overall factory overhead variance and analyze it with each of the following variance analysis methods, indicating whether the variances computed are favorable or unfavorable.
(1) Two-variance method, for controllable and volume variances.
(2) Three-variance method, for spending, variable efficiency, and volume variances.

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2 hours at $6 per hour = $12 2 hours at $3 per hour , 6 Fixed overhead Department 6 factory overhead per unit of SX....$18