Fixed Overhead Variances Petra Company uses standard costs for cost control and internal reporting. Fixed costs are budgeted at $41,000 per month at a normal operating level of 10,000 units of production output. During October, actual fixed costs were $44,000 and actual production output was 12,000 units a. Determine the fixed overhead budget variance. b. Assume that the company applied fixed overhead to production on a per-unit basis. Determine the fixed overhead volume variance