Lackawanna Licorice Company uses a standard cost accounting system and applies production overhead to products on the basis of machine hours. The following information is available for the year just ended:

Actual variable overhead: $156,110

Actual total overhead: $445,030

Actual machine hours worked: 23,300

Standard variable-overhead rate per hour: $7.20

Standard fixed-overhead rate per hour: $12.20

Planned activity during the period: 17,000 machine hours

Actual production: 11,200 finished units

Machine-hour standard: Two completed units per machine hour

Required:

1.	Calculate the budgeted fixed overhead for the year.

2.	Compute the variable-overhead spending variance. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Do not round intermediate calculation.)

3.	Calculate the company's fixed-overhead volume variance. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

4-a.

Did the company spend more or less than anticipated for fixed overhead?

	Company spent more
	Company spent less

4-b.	What was the difference in actual and anticipated overhead?