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 131,000 Standard direct labor hours per unit 0.20 Standard fixed overhead rate (per direct labor hour) $2.50 Budgeted fixed overhead $65,000 Actual fixed overhead costs $68,300 Actual hours worked 26,350

Required:

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

Favorable Unfavorable

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

Favorable Unfavorable

3. 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 $

Favorable Unfavorable

Volume Variance $

Favorable Unfavorable