The owner of a clothing factory wants to make more winter coats. according to the law of increasing costs, what will happen next?

a. the factory owner will have to give something up to make more coats.

b. the cost of making winter coats will stay the same.

c. the opportunity to make winter hats goes up.

d. the factory owner will need fewer resources to make more coats

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.