Overhead is charged to production at 85% of direct materials cost. jobs 235, 237, and 238 were completed during june and transferred to finished goods. jobs 235 and 238 have been delivered to customers. actual manufacturing overhead was equal to manufacturing overhead applied. there were no work in process or finished goods inventories at the beginning of june. lee's work in process inventory balance on june 30 was: $5,817 $11,327 $5,977 $4,780

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.