Evaluating Fixed Overhead Relationships. Juarez Medical Center, a Mexican subsidiary of a U. S. corporate hospital chain, has a radiology department which scheduled 2,800 standard hours last year. The standard is 5 patients per hour, and the department actually handled 9,000 patients. Fixed overhead data are given as follows:

This information was transmitted to the U.S. home office and was translated into U. S. dollars. Budgeted amounts were translated at the exchange rate at the time of preparing the budget ( 1 peso \(=\$ 0.35\) ), and the amounts charged to products were translated at the exchange rate at the end of the year ( 1 peso \(=\$ 0.32\) ).
\section*{Required:}
1. What were the fixed overhead budget and the fixed overhead rate per patient last year in pesos?
2. Translate the appropriate information into U.S. dollars.
3. How does the translation affect the unfavorable capacity variance?
4. Where in the translated numbers can be found any exchange gain or loss?

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Fixed overhead charged to patients.. Unfavorable capacity variance... M$ 630,000 350,000