WWW Companys flexible budget for manufacturing overhead follows:

Account	Machine Hours	Machine Hours	Machine Hours
	8,000	9,000	10,000
Variable Overhead	$10,000	$11,250	$12,500
Fixed Overhead	$28,000	$28,000	$28,000
Total Overhead Costs	$38,000	$39,250	$40,500

The following additional information is available for the most recent period:

1. The activity level of 8,000 machine hours was chosen to compute the predetermined overhead rate
2. At 8,000 machine hours level of activity the company should produce 3,200 units of output
3. The companys actual operating results were as follows:

Number of units produced 3,500

Actual machine hours 8,500

Actual fixed overhead $12,500

Actual total overhead $42,500

Required:

1. Compute the variable spending and efficiency variances and fixed overhead spending and volume variances.