Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its ove

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Overhead Variances, Two- And Three-Variance Analyses Oerstman,Inc., uses a standard costing system and develops its overheadrates from the current annual budget. The budget is based on anexpected annual output of 120,000 units requiring 480,000 directlabor hours. (Practical capacity is 500,000 hours.) Annual budgetedoverhead costs total $787,200, of which $556,800 is fixed overhead.A total of 119,400 units using 478,000 direct labor hours wereproduced during the year. Actual variable overhead costs for theyear were $230,600, and actual fixed overhead costs were $556,250.Required: 1. Compute overhead variances using a two-varianceanalysis. Budget Variance $fill in the blank 1 Volume Variance$fill in the blank 3 2. Compute overhead variances using athree-variance analysis. Spending Variance $fill in the blank 5Efficiency Variance $fill in the blank 7 Volume Variance $fill inthe blank 9