An efficiency expert determined that it should take 1.5 hours to make a widget and the company planned to work 17,000 hours during 2020. The ee also determined that the variable cost per HOUR is $4.00 and the fixed overhead cost per HOUR is $2.00. During 2020 the company worked 17,900 hours, produced 12,000 widgets, spent $32,000 for factory rent and $67,125 for factory utilities. Use this information to answer the following,

Compute:

• Fixed overhead volume variance
• fixed overhead spending variance
• variable overhead efficiency variance
• variable overhead spending variance