Alden Company uses a two-variance analysis for overhead variances. Practical capacity is defined as 36 setups and 36,000 machine hours to manufacture 7,200 units for the year. Selected data for 2016 follow:

Budgeted fixed factory overhead:
Setup	$ 57,600
Other	265,000
		$	322,600
Total factory overhead incurred		$	494,000
Variable factory overhead rate:
Per setup		$	650
Per machine hour		$	4
Total standard machine hours allowed for the units manufactured			24,000	hours
Machine hours actually worked			28,000	hours
Actual total number of setups			32

1) Assume that the company includes all setup costs as variable factory overhead. The budgeted total fixed overhead, therefore, is $265,000, and the standard variable overhead rate per setup is $2,250. What are the (a) overhead spending, (b) efficiency, and (c) flexible-budget variances for the year?

2) 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 the (a) overhead spending variance, (b) efficiency variance, and (c) flexible-budget variance for the year?