V. Computation of materials, labor, and overhead variances Tuna Company set the following standard unit costs for its single product. Direct materials (25 lbs. @ $4 per lb.).. $100.00 Direct labor (6 hrs. @ $8 per hr.).. 48.00 Factory overhead-variable (6 hrs. @ $5 per hr.)... 30.00 Factory overhead-fixed (6 hrs. @ $7 per hr.) 42.00 Total standard cost. $220.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available. Operating Levels 70% 80% 90% Production in units 42,000 48,000 54,000 Standard direct labor hours... 252,000 288,000 324,000 Budgeted overhead Fixed factory overhead $2,016,000 $2,016,000 $2,016,000 Variable factory overhead$1,260,000 $1,440,000 $1,620,000 During the current quarter, the company operated at 70% of capacity and produced 42,000 units of product; actual direct labor totaled 250,000 hours. Units produced were assigned the following standard costs: Direct materials (1,050,000 lbs.@ $4 per lb.).. $4,200,000 Direct labor (252,000 hrs. @ $8 per hr.).. 2,016,000 Factory overhead (252,000 hrs.@ $ 12 per hr.) 3,024,000 Total standard cost.$9,240,000 Actual costs incurred during the current quarter follow: Direct materials (1,000,000 lbs. @ $4.25). $4,250,000 Direct labor (250,000 hrs. @ $7.75).. 1,937,500 Fixed factory overhead costs. 1,960,000 Variable factory overhead costs 1,200,000 Total actual costs... $9,347,500 5. Compute the fixed overhead spending and volume variance