Haines Manufacturing Company (HMC) bases its fixed overhead rate on practical capacity of 19,000 units per year. Budgeted and actual results for the most recent year follow:

		Budgeted		Actual
Fixed manufacturing overhead		$532,000		$476,000
Number of units produced		13,000		16,000

1. Calculate the fixed overhead rate based on practical capacity. (Round your final answer to 2 decimal places.)

2. Calculate the fixed overhead spending variance.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)