Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 90,000 direct-labor hours as follows:

Standard costs per unit (one box of paper):

Variable overhead (2 direct-labor hours @ $4)........................$8

Fixed overhead (4 direct-labor hours @ $12)..............................$48

Total...................................................................................$56

During April, 25,000 units were scheduled for production: however, only 20,000 units were actually produced. The following data relate to April.

1. Actual direct-labor cost incurred was $1,782,000 for 99,000 actual hours of work.
2. Actual overhead incurred totaled $1,435,200, of which $475,200 was variable and $960,000 was fixed.

Required:

Prepare two exhibits similar to attachments"U5_3" and"U5_4", which show the following variances. State whether each variance is favorable or unfavorable, where appropriate.

1. Variable-overhead spending variance.
2. Variable-overhead efficiency variance.
3. Fixed-overhead budget variance.
4. Fixed-overhead volume variance.