The Matten Company has developed standard overhead costs based upon a capacity of 180,000 direct labor hours:

Standard costs per unit: Variable portion 2 hours @ $3 = $ 6 Fixed portion 2 hours @ $5 = 10 $ 16 During April, 85,000 units were scheduled for production; however, only 80,000 units were actually produced.

The following data relate to April:

Actual direct labor cost incurred was $644,000 for 165,000 actual hours of work.

Actual overhead incurred totaled $1,378,000; $518,000 variable and $860,000 fixed.

All inventories are carried at standard cost. Required: (Be sure to indicate whether the variances are favorable or unfavorable.) a. Compute the fixed overhead spending (budget) variance. _a)____________ b. Compute the production volume variance._b)___________