Top Eagle Company makes customized goif shirts for sale to golf courses. Each shint requres 1.5 hours to produce because of the customized logo for each goif course. Top Eagle uses direct labor-hours to allocate the owerhead cost to production. Fixed overhead costs, including rent, depreciation, supervisory salaries, and other production expenses, ave budgeted at $15.600 pe menth. The faclity currently used is large enough to produce 1,300 shirts per month. During March, Top Eagle produced 610 shilts and actual fixad costs woro $11,600. Requirements 1. Calculate the fixed overhead spending variance and indicate whether it is tavorable (F) or unfavorable (U). 2. If Top Eagle uses drect labor-hours avallable at capacity to calculate the budgeted foxd cvemead rate, what is the production volumo variance? Indicate whether it is favorable (F) or untavorable (U). 3. An unfavorable production-volume variance could be interpreted as the economic cost of unused capacily. Why would Top Eagle be willing to incur this cost? 4. Top Eagle's budgoted variable cost per unit is $27, and it expects to sell its shirts for $55 apiece. Compute the sales-volume variance and reconcile it with the production-volume variance calculated in requirement 2 . What does each concept measure