World star Fender is a competitor of JMACS fender. JMACS Fender also uses a standard cost system and provide the following? information:

Static budget variable overhead	$3,500
Static budget fixed overhead	$28,000
Static budget direct labor hours	700	hours
Static budget number of units	28,000	units
Standard direct labor hours	0.025	hours per fender

Fender allocates manufacturing overhead to production based on standard direct labor hours. JMAC

Fender reported the following actual results for 2016 actual number of fenders? produced,20,000

actual variable? overhead, $4,960?; actual fixed? overhead $35,000, actual direct labor? hours, 410

Required

1.	Compute the overhead variances for the? year: 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.