Part VII. Variance Analysis. $(20$ points$)$

At the beginning of $2023,$ Balser Company adopted the following standards for the production of

a patented piece of exercise equipment that allows users to exercise while sleeping.

Balser estimates that it uses $30,000$ direct labor hours each year. As part of the absorption

costing system, Balser allocates fixed overhead based on direct labor hours. There are no

beginning inventory balances in the raw materials, WIP, or finished goods inventory accounts on

January $1,2023.$ For the year ended December $31,2023,$ Balser produced and sold $14,300$ units.

Balser's records show the following actual information for the year ended December $31,2023$:

Direct materials purchased and used $62,000$ lbs$.$ @ $$5/$lb$.$

Direct labor cost incurred $28,000$ hrs$.$ @ $$\frac{9\mathrm{.}50}{h}r.$

Variable overhead $$62,000$

Fixed overhead $$178,000$

Required: For this problem, calculate the following four variances in the space indicated on the

next two pages.

Direct materials price variance

Direct materials efficiency variance

Fixed overhead production volume variance

Fixed overhead spending variance