Zeta, Inc., produces handwoven rugs. Budgeted production is 5,000 rugs per month and the standard direct labor required to make each rug is 2 hours. All overhead is allocated based on direct labor hours. Zeta's manager is interested in what caused the recent month's $3,000 unfavorable overhead variance. The following information was available to aid in the analysis:

	Budgeted amounts					Actual Results
Production in units			5,000					4,500
Total labor hours			10,000					9,000
Total variable overhead		$	60,000				$	55,000
Total fixed overhead			40,000					38,000
Total overhead		$	100,000				$	93,000

a.	What was the overhead spending variance for the month?

Spending variance

$

(Click to select) F U None

b.	What was the overhead volume variance?

Volume variance

$

(Click to select) U None F