eBook Calculator Print Item 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 0.2 Standard fixed overhead rate (per direct labor hour) $2.20 $65,000 Budgeted fixed overhead Actual fixed overhead costs Actual hours worked $68,400 26,450 Required: 1. Calculate the fixed overhead spending variance using the formula approach $ 3,400 Unfavorable 2. Calculate the volume variance using the formula approach $ 7,360 3. What if 128,000 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 Volume Variance