Required:1. Calculate the standard fixed overhead rate and the standard variable overhead rate.2. Compute the applied fixed overhead and the applied variable overhead. What is the total fixed overhead variance? Total variable overhead variance?3. Break down the total fixed overhead variance into a spending variance and a volume variance. Discuss the significance of each.4. Compute the variable overhead spending and efficiency variances. Discuss the significance of each.5. Journal entries for overhead variances were not discussed in this chapter. Typically the overhead variance entries happen at the end of the year. Assume that applied fixed (variable) overhead is accumulated on the credit side of the fixed (variable overhead) control account. Actual fixed (variable) overhead costs are accumulated on the debit side of the respective control accounts. At the end of the year the balance in each control account is the total (fixed) variable variance. Create accounts for each of the four overhead variances and close out the total variances to each of these four variance accounts. These four variance accounts are then usually disposed of by closing them to Cost of Goods Sold.Form a group with two to four other students and prepare the journal entries that isolate the four variances. Finally prepare the journal entries that close these variances to Cost of Goods Sold.