Branson Company uses a standard cost system. Manufacturing overhead is applied to units of product on the basis of direct labour-hours allowed for the actual output of the period.

Total budgeted fixed overhead cost for the year			$ 30,000
Actual fixed overhead cost for the year			$ 31,000
Budgeted standard direct labour-hours			20,000
Actual direct labour-hours			22,000
Standard direct labour-hours allowed for the actual output			23,000

1. Compute the fixed portion of the predetermined overhead rate for the year.

2. Compute the fixed overhead budget, volume and total variances.