Which of the following information about threatened litigation should not be considered to determine
whether an accrual is appropriate prior to an issuance of a company's financial statements?

A. The period in which the underlying cause of the threatened litigation occurred.
B. The degree of probability of an unfavorable outcome.
C. The ability to make a reasonable estimate of the amount of loss.
D. The period in which the threatened litigation became known to management.

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.