$1.$

Compute$$ material, labor, and overhead variances.

$2.$

Interpret the variances.

$3.$

Suppose the cost function for variable overhead was

$ $4\mathrm{.}50$$$4\mathrm{.}50$

per labor hour instead of

$ $6\mathrm{.}75$$$6\mathrm{.}75$

per kayak. Compute the$$ variable$-$overhead efficiency variance and the total overhead spending variance. Would these variances lead you to a different interpretation of the overhead variances from the interpretation in requirement$2?$ Explain.