Exerclse $10$A$-1($Algo$)$ Flxed Overhead Varlances $[$LO$10-4]$

Primara Corporation applies overhead to products based on the standard direct labor$-$hours allowed for the actual output. Data

concerning the most recent year appear below.

Required:

Compute the fixed portlon of the predetermined overhead rate for the year.

Note: Round Fixed portion of the predetermined overhead rate to $2$ decimal places.

Compute the fixed overhead budget varlance and volume varlance.

Note: Indicate the effect of each varlance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($I$.$e$.,$ zero

varlance.$).$ Input all amounts as positive values.