8-23 Overhead variances, service sector. Meals on Wheels (MOW) operates a meal home-delivery service. It has agreements with 20 restaurants to pick up and deliver meals to customers who phone or fax orders to MOW. MOW allocates variable and fixed overhead costs on the basis of delivery time. MOW's owner, Josh Carter, obtains the following information for May overhead costs: Required 1. Calculate rate and efficiency variances for MOW's variable overhead in May. 2. Calculate the rate variance and production-volume variance for MOW's fixed overhead in May. 3. Comment on MOW's overhead variances, and suggest how Josh Carter might manage MOW's variable overhead differently from its fixed overhead costs