Hamburg Equity Company offers financial services to its clients. Recently, Hamburg 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. (Click the icon to view the cost driver findings.) The technology budget for Hamburg and its actual results for the first quarter of 2020 are given below: (Click the icon to view the first quarter budget information.) (Click the icon to view the first quarter actual results.) Read the requirements Requirement 1. Calculate the variable overhead spending and efficiency variances, and indicate whether each is favorable (F) or unfavorable (U). Begin by computing the following amounts for the variable overhead. Actual Input Qty. Actual Costs x Allocated Incurred Budgeted Rate Flexible Budget Overhead Requirements 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 Hamburg Equity's overhead variances. In your view, is the firm right to be worried about its control over technology spending? Actual results Client interactions 20,600 Fixed overhead costs $ 47,790 Variable overhead costs $ 27,500 CPU units used 12,500 Print Done - X Budget information Client interations 20,000 CPU units per client interaction 0.6 Fixed overhead costs Variable overhead rate k $48,000 $2.40 per CPU unit Print Done - X