Crazy Fish Winery (based on problem from Cost Accounting - Horngren, Datar and Foster) ACCT 5012 - Strategic Cost Analysis Tom Fields Crazy Fish Winery purchases select wines in bulk from the area's wineries and blends and bottles the wine for sale under its own label. Its variable overhead costs (power, cleaning supplies and the like) and fixed overhead costs (salaries of skilled vintners involved in quality-control and building-related costs) are allocated on the basis of bottling machine-hours. For the quarter ending September 30, 2008, Crazy Fish reports the following: Actual Results Static Budget Production Volume (bottles) 480,000 420,000 Bottling machine-hours 3,000 2,800 Variable overhead $153,000 $140,000 Fixed overhead $960,000 $980,000.

Questions: 

1. Compute the variable overhead spending and efficiency variances. 

2. Compute the fixed overhead spending and production-volume variances. 

3. Briefly interpret each of these ratios.