The Quality Manufacturing Company applies fixed manufacturing overhead at the rate of \($7\) per direct labor hour. Fixed manufacturing overhead is budgeted to be \($336,000\) per month. The direct labor efficiency standard is three hours per finished unit. Although budgeted production for the month was 16,000, the company only produced 15,500 units.

Production required actual direct labor hours of 60,000 and actual fixed manufacturing overhead cost incurred was $344,000.

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.