Todd Manufacturing Company’s budgeted production is 200,000 units per month.

Budgeted monthly fixed manufacturing overhead is \($2,400,000\) and is applied to production at a rate of \($4\) per direct labor hour. The direct labor efficiency standard is three direct labor hours per unit of production. Last month it took 520,000 actual direct labor hours to produce 175,000 units. Actual fixed manufacturing overhead for the month was $2,435,000.

Required:

a. Determine the fixed manufacturing overhead budget variance.

b. Determine the fixed manufacturing overhead volume variance.