Emden Capital Company offers financial services to its clients. Recently, Emden has experienced rapid growth and has increased both its client base and the variety of services it offers. The company is becoming concerned about its rising costs, however, particularly related to technology overhead. The technology budget for Emden and its actual results for the first quarter of 2017 are given below:

Client interations 18,000 Fixed Overhead $59,400 Variable Overhead 5,400 CPU units @ $1.80 per CPU unit Client interactions 20,000 Fixed Overhead $58,000 Variable Overhead $20,800 CPU Units used 8,000

1. Calculate the variable overhead spending and efficiency variances, and indicate whether each is favorable (F) or unfavorable (U). 2. Calculate the fixed overhead spending and production-volume variances, and indicate whether each is favorable (F) or unfavorable (U). 3. Comment on Emden Capital's overhead variances. In your view, is the firm right to be worried about its control over technology spending?