Calculating the Fixed Overhead Spending and Volume Variances

Standish Company manufactures consumer products and provided the following information for the month of February:

Units produced131,600Standard direct labor hours per unit0.2Standard fixed overhead rate (per direct labor hour)$2.30Budgeted fixed overhead$64,700Actual fixed overhead costs$68,900Actual hours worked26,550

Calculating the Fixed Overhead Spending and Volume Variances Standish Company manufactures consumer products and provided the following information for the month of February: Units produced 131,600 Standard direct labor hours per unit 0.2 Standard fixed overhead rate (per direct labor hour) $2.30 Budgeted fixed overhead $64,700 Actual fixed overhead costs $68,900 26,550 Actual hours worked Required: 1. Calculate the fixed overhead spending variance using the formula approach. $ 2. Calculate the volume variance using the formula approach. 3. What if 127,100 units had actually been produced in February? What impact would that have had? Indicate what the new variances would be below. Fixed Overhead Spending Variance Volume Variance