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From the following information for Alfred industries, compute the overhead spending variance and the volume variance.
Standard manufacturing overhead based on normal Monthly volume:
Fixed ($300,000 / 20,000units)........................................$15.00
Variable ($100,000 / 20,000units)......................................5.00 $20.00
Units actually produced in current month............................................ 18,000 units
Actual overhead costs incurred (including $300,000fixed)....................... $383,800
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