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Sedona Company set the following standard costs for one unit of its product for 2015.

Direct material (20 Ibs. @ $3.70 per Ib.)		$	74.00
Direct labor (10 hrs. @ $8.80 per hr.)			88.00
Factory variable overhead (10 hrs. @ $4.20 per hr.)			42.00
Factory fixed overhead (10 hrs. @ $2.30 per hr.)			23.00
Standard cost		$	227.00

The $6.50 ($4.20 + $2.30) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 62,000 units per month. The following monthly flexible budget information is also available.

		Operating Levels (% of capacity)
Flexible Budget			65%				70%				75%
Budgeted output (units)			40,300				43,400				46,500
Budgeted labor (standard hours)			403,000				434,000				465,000
Budgeted overhead (dollars)
Variable overhead		$	1,692,600			$	1,822,800			$	1,953,000
Fixed overhead			998,200				998,200				998,200
Total overhead		$	2,690,800			$	2,821,000			$	2,951,200

During the current month, the company operated at 65% of capacity, employees worked 389,000 hours, and the following actual overhead costs were incurred.

Variable overhead costs		$	1,650,000
Fixed overhead costs			1,048,000
Total overhead costs		$	2,698,000

1.	Compute thevariable overhead spending and efficiency variances.

2.	Compute thefixed overhead spending and volume variances.