Problem 2 Speed Control Inc. Manufactures carburetors and uses a standard cost system. The standard factory overhead costs per carburetor are based on machine hours and are as follows: $12 Variable overhead (3 hours at $4/hour) Fixed overhead (3 hours at $5/hour**) 15 Total overhead cost per unit **Based on an expectation of 12,000 carburetors per month. The following additional information is available for the month of December: 10,000 carburetors were produced although 12,000 had been scheduled for production. 32,000 machine hours were used The standard direct labor rate is $9 per hour The standard direct labor time per unit is 4 hours. Variable overhead costs were $125,000 Fixed overhead costs were $185,000 Required: a. (6 points) Calculate the spending and efficiency variances for variable overhead