Assume that Exxon Mobile uses a standard cost system for each of its refineries. For the Houston refinery, the monthly fixed overhead budget is \($8,000,000\) for a planned output of 5,000,000 barrels. For September, the actual fixed cost was \($8,750,000\) for 5,100,000 barrels.

Required

a. Determine the fixed overhead budget variance.

b. If fixed overhead is applied on a per-barrel basis, determine the volume variance.