Review the data from Great Fender given in E23-19. Consider the following additional information:

Great Fender allocates manufacturing overhead to production based on standard direct labor hours. Great Fender reported the following actual results for 2012: actual variable overhead, $4,950; actual fixed overhead, $23,000.
Requirements
1. Compute the variable and fixed overhead variances. Use Exhibits 23-11 and 23-12 as guides.
2. Explain why the variances are favorable orunfavorable.

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Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units $ 5,500 $22,000 550 hours 22,000