Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs). The denominator activity level is 60,000 direct labor-hours, or 300,000 units.

A standard cost card for the company's product follows:

Standard quantity or hours Standard price or rate Standard cost

Direct materials 0.25 kilogram $16 per kilogram $4

Direct labor 0.20 DLH $10 per DLH 2

Variable overhead 0.20 DLH $5 per DLH 1

Fixed overhead 0.20 DLH $10 per DLH 2

Total standard cost $9

Actual data for the year follow:

Units produced and sold 330,000

Actual direct labor-hours worked 64,800

Actual variable manufacturing overhead cost $327,240

Actual fixed manufacturing overhead cost $612,000

Required:

a. Compute the variable manufacturing overhead spending and efficiency variances.

b. Compute the fixed manufacturing overhead budget and volume variances.