Overhead variance data with fixed and variable spending variances Panatrol, Inc. manu- factures medical supplies. It uses a highly automated production process and applies manufacturing overhead to products based on standard machine hours. In analyzing its overhead variance, Panatrol isolates fixed and variable spending variances, an efficiency variance, and a volume variance. For the year just completed, Panatrol budgeted $700,000 in fixed manufacturing overhead costs. The manufacturing overhead rate was $9 per machine hour of which $2 per hour was variable overhead. At year-end the balance in the Manufacturing Overhead Applied account was $982,800. The overhead variances reported for the year were:

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Fixed spending variance. Variable spending variance Efficiency variance... Volume variance $42,500 U 4,300 F 6,400 U 64,400 F