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:

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

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

2. What was the overhead volume variance?