Hello. I am running into difficulty solving the problem below and would greatly appreciate a step-by-step explanation on how to arrive at the correct answer:

TYCO Company manufactures consumer products and provided the following information for the month of February:

• Units produced 131,000
• Standard direct labor hours per unit 0.20
• Standard xed overhead rate (per direct labor hour) $2.50
• Budgeted xed overhead $65,000
• Actual xed overhead costs $68,300
• Actual hours worked 26,350

1. Calculate the xed overhead spending variance and volume variance using the three-pronged graphical approach.

2. What if 129,600 units had actually been produced in February? What impact would that have had on the xed overhead spending variance? On the volume variance?

Note: please try to give your calculations and explanations on Word or excel sheet as handwriting is sometimes difficult to read.

I would appreciate detailed calculations so I can better understand how to arrive at the correct answer.