Overtiead Variances, Two-And Three-Variance Analyses Oerstman, inc, uses a standard costing system and develops its overheod rates from the current annual budget, The budget is based an an expected annual output of 121,500 units requiring 486,000 direct labor hours. (Prectical capacity is 506,000 hours.) Annual bodgeted overhead costs total $763,020, of which $544,320 is fixed overhead. A total of 119,200 units using 484,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $241,600, and actua fixed overhead costs were $555,600. Required: 1. Compute overhead variances using a two-variance analysis