The following data are the actual results for Marvelous Marshmallow Company for October.

Actual output: 10,000 cases

Actual variable overhead: $403,000

Actual fixed overheard: $113,000

Actual machine time: 38,900 hours

Standard cost and budget information for Marvelous Marshmallow Company follows:

Standard variable overhead rate: $10.00 per machine hour

Standard quantity of machine hours: 3 hours per case of marshmallows

Budgeted fixed overhead: $108,000 per month

Budgeted output: 12,000 cases per month

Use any of the methods explained in the chapter to compute the following variances and indicate the effect of each variance (I.e. favorable, unfavorable, no effect)

A. Variable overhead spending variance

B. Variable overhead effeciency variance

C. Fixed overhead budget variance

D. Fixed overhead volume variance