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 cost) are allocated on the basis of bottling machine hours. For the quarter ending September 30, 2008, Crazy Fish reports the following: Actual Results 480,000 3.000 Static Budget 420,000 Production Volume (bottles) Bottling machine-hours Variable overhead Fixed overhead $153,0002,800 $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. 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 cost) are allocated on the basis of bottling machine hours. For the quarter ending September 30, 2008, Crazy Fish reports the following: Actual Results 480,000 3.000 Static Budget 420,000 Production Volume (bottles) Bottling machine-hours Variable overhead Fixed overhead $153,0002,800 $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