SCG makes wall units. For the year, the following details have been budgeted. Output, 10,000 units; factory overheads $1,250,000, of which 60% is variable. Each wall unit should take 2.5 hours of direct labor to produce. SCG produced 9,500 units with 24,000 DLH used and $1,175,000 actual overhead was incurred. Overhead is allocated based on direct labor hours (DLH). What is true of SCG's overhead variances? Overhead volume variance is $25,000 favorable Overhead spending variance is $37,500 favorable Overhead efficiency variance is $7,500 favorable Overhead spending variance is $45,000 favorable