8-29 Overhead variances, service sector. Foodies operates a meal home-delivery service. It has agreements with 20 restaurants to pick up and deliver meals to customers who place orders on the Foodies website. Foodies allocates variable and fixed overhead costs on the basis of delivery time. Foodies owner. Asha Ahuja, obtains the following information for May 2020 overhead costs: Required Actual Results Static-Budget Amounts Output units (number of deliveries) 8.600 12.000 Hours per delivery 0.70 Hours of delivery time 5,660 Variable overhead cost per hour of delivery time S 1.75 Variable overhead costs $11,320 Fixed overhead costs $39,600 $33,600 1. Compute spending and efficiency variances for Foodies variable overhead in May 2020. 2. Compute the spending variance and production-volume variance for HMN's fixed overhead in May 2020. 3. Comment on HMN's overhead variances and suggest how Asha Ahuja might manage HMN's variable overhead differently from its fixed overhead costs