Rotal overhead Mankato Control Company, which manufactures electrical switches, uses a standard-costing system. The standard production overhead costs per switch are based on direct-labor hours and are as follows: Variable overhead (2.5 direct-labor hours @ $20.00 per hour) Feld overhead (2.5 direct-labor hours @ $25.00 per hour) Sed on practical capacity of 37,500 direct-labor hours per month The following information is available for the month of October Exercise 11-23 Overhead Variances (LO 11-5) $50.00 62.50 $112.50 • Variable overhead costs were $510,000. • Fixed overhead costs were $625,000. 10,000 switches were produced, although 15,000 switches were scheduled to be produced. 20,000 direct-labor hours were worked at a total cost of $378,000. Required: Compute the variable-overhead spending and efficiency variances and the fixed-overhead budget and volume variances for October. Indicate whether a variance is favorable or unfavorable where appropriate .