1. Macungie Enterprise's fixed overhead budget for the year was $60,000. They planned to produce 10,000 units each requiring 2 hours of direct labor (basis for overhead allocation). For the year their actual budget variance was $5,000 favorable and their volume variance was $6,000 unfavorable. If they had utilized a denominator level based on 7,500 units (instead of 10,000), their fixed overhead variances would have been: Budget Variance $. Favorable / Unfavorable Volume Variance $. _ Favorable / Unfavorable