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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

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 131,800
Standard direct labor hours per unit 0.2
Standard fixed overhead rate (per direct labor hour) $2.30
Budgeted fixed overhead $64,500
Actual fixed overhead costs $68,200
Actual hours worked 26,500

Required:

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

2. Calculate the volume variance using the formula approach. $fill in the blank 3

3. What if 127,600 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 $fill in the blank 5
Volume Variance $fill in the blank 7

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