Question 4 (12 marks) Rivera Company makes customized golf shirts for sale to golf courses. Each shirt requires 1.5 hours to produce because of the customized logo for each golf course. Rivera uses direct labour-hours to allocate the overhead cost to production. Fixed overhead costs, including rent, depreciation, supervisory salaries, and other production expenses, are budgeted at $15,600 per month. The facility currently used is large enough to produce 1,300 shirts per month. During March, Rivera produced 640 shirts and actual fixed costs were $12,800. Required: 1. Calculate the fixed overhead spending variance and indicate whether it is favourable (F) or unfavourable (U). (2 marks) 2. Rivera uses direct labour-hours available at capacity to calculate the budgeted fixed overhead rate, what is the production-volume variance? Indicate whether it is favourable (F) or unfavourable (U). (4 marks) 3. Rivera's budgeted variable cost per unit is $20 and it expects to sell its shirts for $54 apiece. a. Calculate the sales-volume variance and reconcile it with the production-volume variance calculated in requirement 2 . (4 marks) b. What does each concept measure? ( 2 marks)