Which of the following would not require the company to record an accrual on the balance sheet? select one: a. the company owes $43,000 in wages to its employees for the previous two weeks. b. interest will be paid when a note payable matures in the following accounting period c. management believes a lawsuit against the company is meritless because they have never had a single complaint about dangerous side effects of their drug in two years. d. the company knows that they will be fined for pollution as a result of their manufacturing process and can estimate the amount of the obligation. e. none of the above

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget.the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead.a total of 119,300 units, using 478,000 direct labor hours, were produced during the year.actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.