Selected Information from Michaels Company's Flexible Budget Follows Michaels Company Applies Overhead to Production at a Rate of \quad

Selected information from Michaels Company's flexible budget follows:
$\begin{array}{c} \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad\text { Operating Levels }\\\hline \begin{array}{lrrr}& \underline {80 \% }& \underline {90 \% }& \underline {100 \%}\\\text { Budgeted production in units } & 4,800 & 5,400 & 6,000 \\\text { Budgeted labor (standard hours) } & 9,600 & 10,800 & 12,000 \\\text { Budgeted overhead: } & & & \\\text { Variable overhead } & \$ 86,400 & \$ 97,200 & \$ 108,000 \\\text { Fixed overhead } & 63,600 & 63,600 & 63,600\end{array}\end{array}$ Michaels Company applies overhead to production at a rate of $31.25 per unit based on a normal operating level of 80% of capacity.For the current period, Michaels Company produced 5,400 units and incurred $62,000 of fixed overhead costs and $96,000 of variable overhead costs.The company used 11,000 labor hours to produce the 5,400 units.Calculate the variable overhead spending and efficiency variances and the fixed overhead spending and volume variances.Indicate whether each variance is favorable or unfavorable.