Springfield Bank originates mortgage loans for residential housing. The company charges a service fee for processing loan applications. This fee is set twice a year based on the cost of processing a loan application. For the first half of this year, the bank estimated that it would process 450 loans.

Correspondence, credit reports, supplies, and other materials that vary with each loan are estimated to cost \($45\) per loan. The company hires a loan processor at an estimated cost of \($60,000\) per year and an assistant at an estimated cost of \($50,000\) per year. The cost to lease office space and pay utilities and other related costs is estimated to be \($130,000\) per year.

During the first six months of this year, Springfield Bank processed 480 loans. Cost of materials, credit reports, and other items related to loan processing were 12 percent higher than expected for the volume of loans processed.

The loan processor and her assistant cost \($55,000\) for the six months. Leasing and related office costs were \($63,000\) for the six months.

Required Prepare an analysis of the variances for Springfield Bank.