The flotation cost for a company is computed as: Multiple Choice the weighted average of the flotation costs associated with each form of financing. the geometric average of the flotation costs associated with each form of financing. a weighted average based on the book values of the company's outstanding securities. one-half of the flotation cost of debt plus one-half of the flotation cost of equity. the arithmetic average of the flotation costs of both debt and equity.

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.