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Erie Company manufactures an MP3 player called the Jogging Mate. The company uses standards to control its costs. The labour and variable overhead standards that

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Erie Company manufactures an MP3 player called the Jogging Mate. The company uses standards to control its costs. The labour and variable overhead standards that have been set for one Jogging Mate MP3 player are as follows: Budgeted fixed overhead was estimated to be $30, 000 per month. Fixed overhead cost is applied using direct labour-hours. During August, 5,450 hours of direct labour time was recorded in the manufacture of 19,000 units of the Jogging Mate. The direct labour cost totalled $109,100 for the month. Actual variable overhead and fixed overhead costs were $20,710 and $30,400, respectively. Suppose the static budget volume is 18,000 players-this is the denominator volume. Compute the volume variance for fixed overhead cost. (Round intermediate calculations to the nearest whole dollar amount. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Suppose that the static budget volume is also the normal volume and that the budgeted variable overhead cost in the static budget is $30, 000. Given the standard cost card data in the question, calculate the under- or over applied fixed overhead for August. (Do not round intermediate calculations.)

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