Fixed Overhead Variances Rostand Inc. operates a delivery service for over 70 restaurants. The corporation has a fleet of vehicles and has invested in a sophisticated, computerized communications system to coordinate its deliveries. Rostand has gathered the following actual data on last year's delivery operations Deliveries made Direct labor Actual variable overhead $157,700 Rostand employs a standard costing system. During the year, a variable overhead rate of $5.10 per hour was used. The labor standard requires 0.80 hour per delivery. Assume that the actual fixed overhead was $403,400. Budgeted fixed overhead was $400,000, based on practical capacity of 32,000 direct labor hours. Required: 1. Calculate the standard fixed overhead rate based on budgeted fixed overhead and practical capacity. 38,600 31,000 direct labor hours @?14.00 2. Compute the fixed overhead spending and volume variances. Enter amounts as positive numbers and select Favorable or Unfavorable. Spending variance Volume variance Unfavorable v Unfavorable ? Check My work 1. Standard Fixed Overhead Rate (SFOR) = Budgeted Fixed Overhead / DLH 2. Spending Actual FOH - Budgeted FOH 3. volume = Budgeted FOH-Applied FOH Review the "How to Calculate Fixed Overhead Variances: Columnar and Formula Approaches" example in your text