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 (5 direct-labor hours @ $13.00 per hour) Fixed overhead (5 direct-labor hours @ $21.00 per hour)* Total overhead *Based on capacity of 302,500 direct-labor hours per month. The following information is available for the month of October. $ 65 105 $ 170 Variable overhead costs were $4,140,000. Fixed overhead costs were $6,375,000. 57,500 switches were produced, although 60,500 switches were scheduled to be produced. 280,000 direct-labor hours were worked at a total cost of $4,325,000. 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 "None" and enter "O" for no effect (i.e., zero variance).)