Kai sells a small magazine full of celebrity gossip to college students for $2.89 per copy. hiring the printing press for one day, the only fixed cost, is $465 an issue. the variable cost of printing each issue is $0.84 per copy. the printer tells kai the cost of hiring the press is to increase by $135 per day. what total contribution is required to cover the new fixed costs and earn $500 profit per issue?

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.