4 Exercise 16-46 (Algo) Fixed Cost Variances (LO 16-6) 5 polres Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 136,000 liters at a budgeted price of $345 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Book Direct materials Direct labor (2 pounds 522) 546 (0.5 hours 560) 30 Prant Variable overhead is applied based on direct labor hours. The variable overhead rate is $200 per direct labor hour. The fixed overhead rate for the moster budget level of activity is $28 per unit. All non-manufacturing costs are fixed and are budgeted at $3 million for the coming year At the end of the year, the costs analyst reported that the soles activity variance for the year was $1,026,000 unfavorable The following is the octual income statement in thousands of dollars) for the year Reference 545,218 14.710 3,710 12/13 5202755 Sales revenue Less variable costs Direct materials Direct labor Variable overhead Total variable costs Contribution margin Less fixed costs id manufacturing overhead Hon manufacturing costs Total xed costs Operating profit 2.930 1,410 55,342 $19,120 Required What are the fixed overhead price and production volume variances for Paynesville (Enter your answers in whole dollars. Indicate the effect of each variance by selectina "F" for favorable or "U" for unfavorable. If there is no effect do not selectather option 1 Required: What are the fixed overhead price and production volume variances for Paynesville Enter your answers in whole dollars. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option) Fred Overhead varande Fedovered production Volume van