2 . Atlantic Company has the following monthly flexible budget information based on an expectation of operating at 80% of the factorys capacity or 10,000 units produced:

	Operating Levels
	70%	80%	90%
Budgeted output in units	8,000	10,000	12,000
Budgeted labor (standard hours)	16,000	20,000	24,000
Budgeted overhead
Variable overhead	$ 48,000	$60,000	$ 72,000
Fixed overhead	40,000	40,000	40,000
Total overhead	$ 88,000	$100,000	$112,000

During the current month, the company operated at 70% of capacity and employees worked 16,500 hours and the flowing actual overhead costs were incurred:

Variable overhead	$ 47,300
Fixed overhead	41,000
Total overhead	$88,300

Required:

1. Compute the predetermined overhead rate per direct labor hour for variable overhead, fixed overhead, and total overhead.
2. Compute the variable overhead spending and efficiency variances.

Compute the fixed overhead spending and volume variance