In December, Koala Camp Gear Company produced 3,600 Tree Line tents, used 5,700 machine hours, and Decision incurred the following manufacturing-overhead costs: MEM Clg Variable overhead .... ccc Fixed-overh@ad a sisi dsdiesccectaecants 29,000 Koala’s monthly flexible overhead budget for December is the same as that given in Exhibit 17-3.

a. Compute Koala's variable-overhead variances using the format shown in Exhibit 17-6. Compute the company's fixed-overhead variances using the format shown in Exhibit 17-8.

b. How should Koala’s management interpret the fixed-overhead budget variance?

c. Under what circumstances would there have been no fixed-overhead volume variance for Koala Camp Gear's December operations?