Mendig Equity Company offers financial services to its clients. Recently, Mendig 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 Mendig 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 Incurred Budgeted Rate Flexible Budget Allocated Overhead - X Actual results Requirements More info Mendig's measure of output is the number of client interactions in a given period. After some study, Mendig determines that its variable and fixed technology overhead costs are both driven by CPU units of processing time for client interactions. 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 Mendig Equity's overhead variances. In your view, is the firm right to be worried about its control over technology spending? Budget information Client interactions 14,600 Fixed overhead costs 50,160 Variable overhead costs $ 13,800 Client interations CPU units used 6,000 CPU units per client interaction 14,000 0.4 Fixed overhead costs $50,400 Variable overhead rate $2.40 per CPU unit Print Done Print Done - X Print Done