The Matten Company Has Developed Standard Overhead Costs Based Upon

The Matten Company has developed standard overhead costs based upon a capacity of 180,000 direct labor hours:
$\begin{array}{llr} \text { Standard costs per unit: } &\\ \text { Variable portion } & \text {2 hours \( @ \$ 3=\$6 \)}\\ \text { Fixed portion } & \text {2 hours \( @ \$ 5=10 \)}\\&\quad\quad\quad\quad\quad\quad\$16\end{array}$

During April, 85,000 units were scheduled for production; however, only 80,000 units were actually produced. The following data relate to April:
Actual direct labor cost incurred was $644,000 for 165,000 actual hours of work.
Actual overhead incurred totaled $1,378,000; $518,000 variable and $860,000 fixed.
All inventories are carried at standard cost.
Required:
(Be sure to indicate whether the variances are favorable or unfavorable.)
a. Compute the fixed overhead spending (budget) variance.
b. Compute the production volume variance.