3. Lancaster Ltd. produces a unique item. Lancaster's management team wishes to perform a variance analysis on its fixed overhead. Fixed overhead is applied to units produced using direct labor hours as its cost driver. The company's managerial accountant has compiled the following information: Projected data: Estimated direct labor hours 40,000 hours Estimated fixed overhead $90,000 Actual data: Actual production 300,000 units Actual direct labor hours used 50,000 hours Actual fixed overhead $100,000 Required: A. Compute the fixed overhead spending variance and identify if the variance is favorable or unfavorable. B. Compute the fixed overhead volume variance and identify if the variance is favorable or unfavorable.