O Notes Comments Question 6(25 Marks) Part A (9 marks) Standard cecasting Bounce Right Inc produces Basketballs for the internal and external market. The balls are produced as pairs but are shipped in batches. The variable and fixed overheads as recorded by the shipping department for the year 2017 which is presented below: Static Budget information Actual results Pairs of balls shipped 2,400,000 1,800,000 Average number of balls per crate Packing hours per crate 0.5 hours 0.8 hours Variable overhead cost per hour $20 Fixed overhead cost $160,000 $152,000 Required 1. For variable overhead cost, compute the spending and efficiency variances. (4 marks) 2. For fixed overhead cost, compute the spending and production -volume variance assuming fixed overhead is allocated using crate packing hours.