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?

Alden Company uses a two-variance analysis for overhead variances. Practical capacity is defined as 38 setups and 38,000 machine hours to manufacture 9,500 units for the year. Selected data for 2016 follow: Budgeted fixed factory overhead: Setup Other $102,600 115,000 $ 217,600 $ 487,000 $700 Total factory overhead incurred Variable factory overhead rate: Per setup Per machine hour Total standard machine hours allowed for the units manufactured Machine hours actually worked Actual total number of setups 7 28,000 hours 31,500 hours 34 Required