Different management levels in Bates Inc. require varying degrees of managerial accounting

information. Because of the need to comply with the managers' requests, four different variances

for manufacturing overhead are computed each month. The information for the September

overhead expenditures is as follows:

Budgeted output units 3,200 units

Budgeted fixed manufacturing overhead $20,000

Budgeted variable manufacturing overhead $5.00 per direct labour hour

Budgeted direct manufacturing labour hours 2 hours per unit

Fixed manufacturing costs incurred $26,000

Direct manufacturing labour hours used 7,200

Variable manufacturing costs incurred $35,600

Actual units manufactured 3,400

a. Compute variable overhead variances

b. Compute fixed overhead variances