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

Standard direct labor hours per unit

Standard fixed overhead rate $($per direct labor hour$)$

Budgeted fixed overhead

Actual fixed overhead costs

Actual hours worked

Required:

Required:

Calculate the fixed overhead spending variance using the formula approach.

Unfavorable

Calculate the volume variance using the formula approach.

$ Favorable

$131,300$

$0\mathrm{.}2$

$$2\mathrm{.}20$

$$65,000$

$$68,000$

$26,750$