Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 32 setups and 32,000 machine hours to manufacture 8,000 units for the year. Selected data for 2019 follow:

3. Assume that the company uses only machine hours as the activity measure to apply both variable and fixed overhead, and that it includes all setup costs as variable factory overhead. What is (a) the Total Overhead Spending Variance, (b) the Overhead Efficiency Variance, and (c) total Overhead Flexible-Budget Variance for the year? Indicate whether each variance is favorable (F) or unfavorable (U).

Budgeted fixed factory overhead:
Setup cost	$	120,000
Other		176,000			$	296,000
Total factory overhead cost incurred					$	495,000
Variable factory overhead rate:
Per setup					$	600
Per machine hour					$	5.00
Total standard machine hours allowed for the units manufactured						24,000	hours
Machine hours actually worked						27,500	hours
Actual total number of setups						28
Actual number of units produced during the year						6,000
Standard number of setups for units produced during the year						24