5) Rainbow Painting Services Inc. paints interiors of residents and commercial structures. The firm management has established cost standards based on the amount of area to be painted: Direct material ($18 per gallon of paint); $1.50 per 100 square feet Direct labor: $2 per 100 square feet; 400 square feet per hour per worker Variable overhead: 0.60 per 100 square feet Fixed overhead (based on 600,000 square feet er month) $1.25 per 100 square feet The company painted 600,000 square feet of wall and ceiling space. The following costs were incurred: Direct Material (450 gallons purchased and used) $ 8,550 Direct Labor (1,475 hours) 12,390 Variable overhead 3,422 Fixed overhead 7,740 Compute the following variances Indicating whether each is favorable or unfavorable. (10 Points) 1. Variable overhead spending variance 2. Fixed overhead spending variance 3. Fixed overhead volume variance 4. Factory overhead spending variance - using a 3-way analysis 5. Controllable variance - 2-way analysis Hints: 1) Determine the 15 ingredients (purchase and usage are one as they are the same) 2) The standard quantity is 500 gallons