Maddie has been working as the creative head at juno designs for the past 25 years. although she likes her job, she has begun to feel like she is in a creative slump and has been considering leaving to start her own company. maddie will be eligible for retirement in five years. after discussing it with her husband, she decides that leaving now would be a mistake. after she retires, she will reconsider the idea of starting her own company. this is an example of commitment.

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.