Exercise 11-32 Overhead Variances (LO 11-5) Montoursville Control Company, which manufactures electrical switches, uses a standard-costing system. The standard production overhead costs per switch are based on direct-labor hours and are as follows: Variable overhead is direct laber heure e $13.00 per hour) Fixed overhead (5 direct-Labor boues $21.00 per hour) Total overhead 65 109 170 "Based on capacity of 307,500 direct-labor hours per month The following information is available for the month of October Variable overhead costs were $5,340,000. . Fixed overhead costs were $7,875,000. 58,500 switches were produced, although 61,500 switches were scheduled to be produced 290,000 direct-labor hours were worked at a total cost of $5,325,000. ve 31 "Based on capacity of 307,500 direct-labor hours per month The following information is available for the month of October Variable overhead costs were $5,340,000, Fixed overhead costs were $7,875,000 58,500 switches were produced, although 61,500 switches were scheduled to be produced 290,000 direct-labor hours were worked at a total cost of $5,325,000 1 rices Required: Compute the variable-overhead spending and efficiency variances and the fixed-overhead budget and volume variances for October (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "Nono" and enter "o" for no effect (i.e., zero variance).) Variable-overhead spending variance Variable-overhead efficiency variance Fixed-overhead budget variance Foxed-overhead volume variance Unfavorable Favorable Unfavorable Unfavorable