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	131,100
Standard direct labor hours per unit	0.2
Standard fixed overhead rate (per direct labor hour)	$2.30
Budgeted fixed overhead	$64,400
Actual fixed overhead costs	$68,800
Actual hours worked	26,800

Required:

1. Calculate the fixed overhead spending variance using the formula approach. $

2. Calculate the volume variance using the formula approach. $

3. What if 128,000 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	$