Problem 3. (10 Points).

Gleason Company has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of capacity. Fixed overhead is $360,000 and variable overhead is $180,000 at this level of activity.

	Per Unit
Direct material (3 lbs. @ $2.00/1b.)	$ 6.00
Direct labor (0.5 hrs. @ $8.00/hr. ) .	4.00
Variable overhead (0.5 hrs. @ $3.00/hr.)	1.50
Fixed overhead (0.5 hrs. @ $6.00/hr.)	3.00
Total standard cost ......	$14.50

During the current period, the company operated at 80% of capacity and produced 128,000 units. Actual costs were:

Direct material (380,000 lbs.) .	$779,000
Direct labor (63,000 hrs.) .	507,150
Fixed overhead .	365,000
Variable overhead	220,000

Calculate the variable overhead spending and efficiency variance and the fixed overhead spending and volume variances. Indicate whether each is favorable or unfavorable.