Amnesty Elements uses a standard cost system, applying manufacturing overhead on the basis of machine hours. The company's overhead standards per unit are shown below.

Variable overhead: 4 hours at $11.00 per hour

Fixed overhead: 4 hours at $8.00^* per hour

^*Based on planned monthly activity of 140,000 machine hours

Actual data for May were:

Number of units produced: 28,300

Number of machine hours worked: 116,000

Variable overhead costs incurred: $1,185,000

Fixed overhead costs incurred: $1,195,000

Required:

1. Calculate the spending and efficiency variances for variable overhead.
2. Calculate the budget and volume variances for fixed overhead.

(For all required indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

effect (i.e., zero variance.) A. Spending variance Efficiency variance B. Budget variance Volume variance