1. The following standards for variable overhead have been established for a company that makes only one product: Standard hours per unit of output... Standard variable overhead rate... 6.9 hours $15.80 per hour The following data pertain to operations for the last month: Actual hours Actual total variable overhead cost.. Actual output... 6.100 hours $97,600 800 units Required: Based upon the data above are the overhead variances favorable or unfavorable? 2. What is the spending variance and how might it be used by management? (4pts) 3. During a recent lengthy strike at Morell Manufacturing Company, management replaced striking assembly line workers with office workers. The assembly line workers had been paid $18 per hour while the office workers are only paid $10 per hour. What is the most likely effect on the labor variances in the first month of this strike? (4 pts)