Bicol Corporation's predetermined overhead rate is P20 per machine hours of which 60% is variable. The standard machine hour per unit produced is 0.50 hours while the company's budgeted production at the beginning of the vear is 500,000 units. The following variances relating to overheads were computed at the end of the period recently ended: Efficiencv Variance Variable 114,000.00 unfavorable Spending Variance Variable 236,000.00 unfavorable Budget Variance Fixed 100,000.00 unfavorable Volume Variance Fixed 100,000.00 unfavorable