Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

Total budgeted fixed overhead cost for the year . . . . . . . . . . . . . . . . $250,000
Actual fixed overhead cost for the year . . . . . . . . . . . . . . . . . . . . . . .   $254,000
Budgeted direct labor-hours (denominator level of activity) . . . . . .      25,000
Actual direct labor-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      27,000
Standard direct labor-hours allowed for the actual output . . . . . . . .    26,000

Required:

1. Compute the fixed portion of the predetermined overhead rate for the year.

2. Compute the fixed overhead budget variance and volume variance.