1) Compute overhead variances using a two-variance analysis. Budget Variance _____ Volume Variance _____

2) Compute overhead variances using a three-variance analysis. Spending Variance _____ Efficiency Variance _____ Volume Variance _____

Please show all work so that I can understand where numbers are being pulled. Thank you.

Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours. (Practical capacity is 500,000 hours.) Annual budgeted overhead costs total $748,800, of which $537,600 is fixed overhead. A total of 119,000 units using 478,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $240,700, and actual fixed overhead costs were $555,600. Required: 1. Compute overhead variances using a two-variance analysis. Budget Variance $ 47,500 x Unfavorable Volume Variance $ Unfavorable 2. Compute overhead variances using a three-variance analysis. Spending Variance Unfavorable Efficiency Variance Unfavorable Volume Variance Unfavorable Feedback