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Cholla Companys standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $25,800 and budgeted production of 20,000 units. Actual results for the
Cholla Companys standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $25,800 and budgeted production of 20,000 units. Actual results for the month of October reveal that Cholla produced 18,000 units and spent $23,400 on fixed manufacturing overhead costs. Calculate Chollas fixed overhead rate and the fixed overhead volume variance. (Round "Fixed Overhead Rate" to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)
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