The following information relates to Tallman comma Inc.?'s overhead costs for the? month: Static budget variable overhead - $8,000 Static budget fixed overhead - $3,000 Static budget direct labor hours - 1,000 hours Static budget number of units - 5,000 units Tallman allocates manufacturing overhead to production based on standard direct labor hours. Last? month, Tallman reported the following actual? results: actual variable? overhead, $ 10600?; actual fixed? overhead, $ 2780?; actual production of 7400 units at 0.25 direct labor hours per unit. The standard direct labor time is 0.2 direct labor hours per unit ?(1000 static direct labor hours? / 5000 static? units). Requirements 1. Compute the overhead variances for the? month: variable overhead cost? variance, variable overhead efficiency? variance, fixed overhead cost? variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable.