Windsor, Inc. uses a perpetual inventory system and reported $501,000 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company bought $49,000 of inventory and sold inventory that had cost $32,500. At the end of the month, the physical count of inventory shows $515,000 on hand. How much shrinkage occurred during the month

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.