D. The members of the class are the employees of a small, privately held company that produces computer games. Everyone shares in the profits of the company. The company has been making electronic versions of popular board games for established game companies. Business is steady, but profits have not been large. The marketing team says that a first-person shooter game based on the war in Afghanistan would generate a huge amount of publicity for the company and could be highly profitable. Debate the morality of producing such a game.

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.