A Stadium was completed in 1956 at a cost $1.2M. At the same time as the completion of the stadium, a gift of $1.2M was given for a future replacement. A new stadium is being considered for 2021 (56 years later). Inflation has been 5.0%/yr and the $1.2M gift investment has earned a market rate of return of 7.0%/yr over that time frame. How much better or worse will the new stadium be as compared to the Stadium built in 1965?

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.