At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: a. Units produced: 84, 600 b. Direct labor: 158, 900 hours at $18.90 c. FOH: $931,000 d. VOH: $114, 900 1. Compute the variable overhead spending and efficiency variances