A company provided the following information:

Standard fixed overhead rate (SFOR) per direct labour hour $7.00

Actual fixed overhead rate (AFOR) per direct labour hour $6.95

Actual direct labour hours worked (AH) 36,100

Actual production in units 12,000

Standard hours allowed for actual units produced (SH) 36,000

Required:

Using the columnar approach, calculate the fixed overhead spending and efficiency variances.

(MY WORK)

Columnar Approach:

Fixed Overhead Spending Variance

= (Actual Fixed Overhead Rate-Standard Fixed overhead Rate) * Actual direct labour hours worked

= (AFOR-SFOR) *AH

= (6.95-7.00)*36,100

= -$ 1,805 ( Favorable)

The AFOR is lower than the SFOR resulting in cost savings.

NEED HELP WITH THE FOLLOWING:

1. Using the formula approach, calculate the fixed overhead spending variance.

2. Using the formula approach, calculate the fixed overhead efficiency variance.

3. Calculate the total fixed overhead variance.