Creative Engraving employs a standard costing system that applies overhead to jobs based on standard machine$-$hours allowed for actual output of the period. During a recent month, the following information was recorded:

Total budgeted fixed overhead cost for the month $ $20,000$

Actual fixed overhead cost for the month $ $19,000$

Budgeted $($denominator$)$ standard machine$-$hours for the month $10,000$

Actual machine$-$hours $9,800$

Standard machine$-$hours allowed for the actual output $9,900$

Required:

$1.$ Compute the fixed portion of the predetermined overhead rate for the year.

$2.$ Compute the fixed overhead budget and volume variances.

Note: Indicate the effect of each variance by selecting $"$F$"$ for favourable, $"$U$"$ for unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$).$

$3.$ What is the dollar amount of underapplied or overapplied fixed overhead for the month?