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

$131,000$

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

$0\mathrm{.}20$

Budgeted fixed overhead

$$2\mathrm{.}50$

Actual fixed overhead costs

$$65,000$

$$68,300$

Actual hours worked

$26,350$

Required:

Calculate the fixed overhead spending variance using the formula approach.

Calculate the volume variance using the formula approach.

Favorable $$

What if $129,600$ 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

Untaverable $$

Volume Variance

Weteverable $=v$