The E. O. Mast Manufacturing Company applies fixed manufacturing overhead at the rate of \($20\) per direct labor hour. Fixed manufacturing overhead is budgeted to be \($4,000,000\) per month. The direct labor efficiency standard is two hours per finished unit.

Last month the company produced 89,000 units using 180,000 direct labor hours and incurring fixed manufacturing overhead cost of $4,100,000.

Required:

a. Determine the fixed manufacturing overhead budget variance.

b. Did the company produce as many units as it had planned? What is the difference between the planned number of units and the number of units actually produced?

c. Determine the fixed manufacturing overhead volume variance.