The cheque-clearing office of Pay Loans Company is responsible for processing all cheques that come to the company for payment. Managers at the company believe that variable overhead costs are essentially proportional to the number of labour-hours worked in the office, so labour-hours are used as the activity base when preparing recent month, appear below: variable overhead budgets and perfor mance reports. Data for Octo e most Budgeted labour-hours Actual labour-hours Standard labour-hours allowed for the actual 1,430 1,335 number of cheques processed 1,450 Actual Costs Incurred in Cost Formula (per labour-hour)October Variable overhead costs: Office supplies Staff coffee lounge Indirect labour $1.60 0.40 3.20 $2,074 584 3,600 Total variable overhead cost $5.20 $6,258 Fixed overhead at Pay Loans Company consists entirely of supervisory salaries and is applied at a rate of $4 per direct labour-hour. Actual fixed overhead costs totalled $4,400 in October, while the flexible budget was $4,000 for the month Required: Prepare an overhead performance report for October for the cheque-clearing office that includes both spending and efficiency variances for variable overhead and the budget variance for fixed overhead (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)