4. Overhead (OH) Variances (3.5pts): Better Than That Co. provided the following information regarding Factory Overhead (OH) from its flexible OH budget. The company has an operating capacity of 100,000 units and expects to operate at 60% of its productive capacity (i.e. expects to operate at 60,000 units, which is 60%*100,000): < < Flexible OH Budget: < Budgeted output (units) < Budgeted DL hours Budgeted OH: Variable OH < 50% 50,000 75,000 Dub $487,500 $171,000 $658,500 Operating Levels (% of capacity) < 60% 60,000+ 90,000 Dub $585,000 70% 80% 70,000+ 80,000 105,000 Dub 120,000 Dub $682,500 $780,000 $171,000 $853,500 $171,000 $951,000 Fixed OH < Total OH $171,000 $756,000 During the current month, the company actually operated at 70% capacity and actually used 102,200 DL hours to produce 70,000 units. The following actual overhead costs were incurred: < Actual Variable OH: Actual Fixed OH: Actual Total OH: < $659,190 $172,200 $831,390 a. (0.5pts) Calculate the Variable OH Spending Variance. Indicate whether this variance is favorable (F) or unfavorable (U). < b. (0.5pts) Calculate the Variable OH Efficiency Variance. Indicate whether this variance is favorable (F) or unfavorable (U). < C. (0.5pts) Calculate the Fixed OH Spending Variance. Indicate whether this variance is favorable (F) or unfavorable (U).