H&B Inc. uses a standard cost system and calculates their application rates using direct labour hours. This year the company had the following standards: Standard direct labour hours per unit: 2 hours Variable overhead application rate: $3 per direct labour hour Fixed overhead application rate: $4 per direct labour hour The company also had the following actuals: Production: 14,000 units Variable overhead: $97,944 Fixed overhead: $134,288 Total direct labour hours: 30,800 What is the fixed overhead spending variance? a) $11,088 favourable Variable overhead application rate: $3 per direct labour hour Fixed overhead application rate: $4 per direct labour hour The company also had the following actuals: Production: 14,000 units Variable overhead: $97,944 Fixed overhead: $134,288 Total direct labour hours: 30,800 What is the fixed overhead spending variance? a) $11,088 favourable b) $11,088 unfavourable Oc) $22,288 favourable d) $22,288 unfavourable