Walkenhorst Companys machining department prepared its 2019 budget based on the following data:

Practical capacity		40,000	units
Standard machine hours per unit		2
Standard variable factory overhead		$3.00	per machine hour
Budgeted fixed factory overhead	$	336,000

The department uses machine hours to apply factory overhead to production. In 2019, the department used 86,800 machine hours and incurred $602,000 in total manufacturing overhead cost to manufacture 42,170 units. Actual fixed overhead cost for the year was $351,000.

Required:

Determine for the year:

4. The total overhead spending variance. State whether this variance was favorable (F) or unfavorable (U).

5. The overhead efficiency variance. State whether this variance was favorable (F) or unfavorable (U).

6. The variable overhead spending variance and the fixed overhead spending variance. State whether each variance is favorable (F) or unfavorable (U).