1. At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products:

   Direct materials (4 lbs. @ $2.80)		$11.20
   Direct labor (2 hrs. @ $18.00)		36.00
   FOH (2 hrs. @ $5.20)		10.40
   VOH (2 hrs. @ $0.70)		1.40
   Standard cost per unit		$59.00

   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: 79,600; (b) Direct labor: 158,900 hours at $18.10; (c) FOH: $831,000; and (d) VOH: $112,400.

   Required:

   1. Compute the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable.

   Spending variance		$fill in the blank 1	Unfavorable
   Efficiency variance		$fill in the blank 3	Favorable

   2. Compute the fixed overhead spending and volume variances. Enter amounts as positive numbers and select Favorable or Unfavorable.

   Spending variance		$fill in the blank 5	Favorable
   Volume variance		$fill in the blank 7	Unfavorable