Using the data shown in E8-16, calculate the following overhead variances:

In e8-16,

Production for the month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 units

Direct labor hours used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18,500 hours

Factory overhead incurred for:

Variable costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$28,500

Fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$52,000

a. Spending variance.

b. Production-volume variance.

c. Efficiency variance.

d. Was the factory overhead under-or over-applied? By what amount?