Auto Brakes Inc. manufactures brake rotors and has always applied overhead to production using direct labor hours. Recently, company facilities were automated, and the accounting system was revised to show only two cost categories: direct material and conversion. Estimated variable and fixed conversion costs for the current month were $205,200 and $81,000, respectively. Expected output for the current month was 5,400 rotors, and the estimated number of machine hours was 10,800. During July 2013, the firm actually used 9,700 machine hours to make 5,100 rotors while incurring $264,000 of conversion costs. Of this amount, $181,000 was variable cost

. a. Using the four-variance approach, compute the variances for conversion costs.

Fixed Conversion Variances: Spending Variance $

Volume Variance $

Total Fixed Conv. Variance $

Variable Conversion Variances:

Spending Variance $

Efficiency Variance $

Total Var. Conv. Variance $