Actual machine hours 840 Standard machine hours allowed 900 Denominator activity (machine hours) 1000 Actual fixed overhead costs $3,800 Budgeted fixed overhead costs $4,000 Predetermined overhead rate ($1 variable = $4 fixed) $5 What is the fixed overhead spending (budget) variance? a. $200 b. $400 c. $300 d. $240 Is the fixed overhead spending (budget) variance favorable or unfavorable? a. favorable b. unfavorable What is the production volume variance? a. $200 b. $400 c. $300 d. $240 Is the production volume variance favorable or unfavorable? a. favorable b. unfavorable