Actual Flexible Budget Applied Fixed $ 220,500 Fixed $ 216,000 21,000*18.90 Variable $ 170,940 Variable $ 170,100 $ 391,440 $ 386,100 $ 396,900 Overhead Spending Variance: $ 5,340 Favourable / Unfavourable Overhead Capacity Variance: $ 10,800 Favourable / Unfavourable Overhead Applied Total Variance: $ 5,460 Based on the above variance analysis results, do you believe the costing system is effective? Explain your response