Variable and Fixed Overhead Variances. Grady Company budgeted fixed factory overhead cost at $50,000 a month. Fixed factory overbead is applied at the rate of $2 per direct labor hour and variable at $3 per direct labor haar. Standard direct labor hours allowed for July production were 23,500. The variable overhead spending variance was $3.000 favorable, with actual variable overhead costs of $67,000 incumed. Actual fixed overhead costs totaled $52,500. Calculate the following variances:

a. Fixed overhead budget.

b. Fixed overhead volume.

c. Variable overhead efficiency.