4

Cholla Compary's standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $10,200 and budgeted production of 30,000 units. Actual results for the month of October reveal that Cholla produced 28.000 units and 5 pent $9,900 on fixed manufacturing overhead costs Required: Calculate Cholla's fixed overhead spending variance. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero varlance)