Overhead Variances, Two-And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its overtiead rates from the current annual budget. The budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours. (Practical capacity is 500,000 hours.) Anriual budgeted overhead costs total $744,000, of which $537,600 is fixed overhead. A total of 119,300 units using 478,000 direct laber hours were produced during the year. Actual variable overheod costs for the year were $240,400, and actual fixed overhead costs were 1555,000 . Required: 1. Compute overhead vaciances uting a twb-variance analysid. 2. Compute overhead variances uxina a threnivauiansa anshaic