Overhead Variances At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Direct materials (4 lbs.$2.80) Direct labor (2 hrs.@ $18.00) FOH (2 hrs. @ $5.20) VOH (2 hrs. $0.70) Standard cost per unit Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: $11.20 36.00 10.40 1.40 $59.00 a. Units produced: 85,100 b. Direct labor: 158,900 hours at $18.10 c. FOH: $866,000 d. VOH: $149,900 Required: 1. Compute the variable overhead spending and efficiency variances. Spending variance Efficiency variance 2. Compute the fixed overhead spending and volume variances. Spending varlances Volume variances