Combined Overhead Variances (SIA, adapted) The Weser Company uses a predetermined total overhead rate of $4.00 per unit based on a denominator capacity of 600,000 units a year or 50,000 units a month.

During October, the company produced 52,000 units and experienced the following combined overhead variances:

Overhead budget variance $1,500 unfavorable Overhead denominator variance $5,000 favorable During November, unit production was 49,000 units and the actual overhead cost incurred was $2,000 less than October’s overhead.

Determine the overhead budget and denominator variances for the month of November.