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 AmountsActual Results

Production in units5,0004,500

Total labor hours10,0009,000

Total variable overhead $60,000$55,000

Total fixed overhead40,00038,000

Total overhead $100,000$93,000

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

b.What was the overhead volume variance?