Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottom line of the report and saw the favorable variance for operating income, confirming her decision to push the workers to get those last 320 cases off the production line before the end of the month. But as she glanced over the rest of numbers, Lexi couldnt help but wonder if there were errors in some of the line items. She was puzzled how most of the operating expenses could be higher than the budget since she had worked hard to manage the production line to improve efficiency and reduce costs. Yet the report, shown below, showed a different story. Actual Budget Variance Cases produced and sold 10,250 9,930 320 Favorable Sales revenue $1,933,900 $1,856,900 $77,000 Favorable Direct material 557,073 546,150 10,923 Unfavorable Direct labor 265,776 258,180 7,596 Unfavorable Variable manufacturing overhead 283,017 278,040 4,977 Unfavorable Variable selling expenses 92,478 89,370 3,108 Unfavorable Variable administrative expenses 41,448 39,720 1,728 Unfavorable Contribution margin 694,108 645,440 48,668 Favorable Fixed manufacturing overhead 110,223 109,230 993 Unfavorable Fixed selling expenses 69,014 69,510 496 Favorable Fixed administrative expenses 128,891 129,090 199 Favorable Operating income $385,980 $337,610 $48,370 Favorable Lexi picked up the phone and called Irvin. Irvin, I dont get it. We beat the budgeted operating income for the month, but look at all the unfavorable variances on the operating costs. Can you help me understand whats going on? Let me look into it and Ill get back to you, Irvin replied. Irvin gathered the following additional information about the months performance. Direct materials purchased: 101,286 pounds at a total of $557,073 Direct materials used: 101,286 pounds Direct labor hours worked: 26,315 at a total cost of $265,776 Machine hours used: 40,663 Irvin also found the standard cost card for a case of product. Standard Price Standard Quantity Standard Cost Direct materials $5.5 per pound 10 pounds $55 Direct labor $10 per DLH 2.58 DLH 25.80 Variable overhead $7 per MH 4 MH 28.00 Fixed overhead $2.73 per MH 4 MH 10.92 Total standard cost per case $119.72 e-f) Calculate the variable overhead spending variance and variable overhead efficiency variance for the month. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Variable overhead spending variance $ Variable overhead efficiency variance $ (g) Calculate the fixed overhead spending variance for the month. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Fixed overhead spending variance $