Happy Valley Pet Products uses a standard costing system that applies overhead to products based on standard direct labour$-$hours allowed for actual output of the period. During the recent year, the following data were collected:

Total budgeted fixed overhead cost for the year $ $109,720$

Actual fixed overhead cost for the year $ $106,520$

Budgeted standard direct labour$-$hours $21,100$

Actual direct labour$-$hours $22,500$

Standard direct labour$-$hours allowed for the actual output $19,600$

Required:

$1.$ Compute the fixed portion of the predetermined overhead rate for the year. $($Round your answer to $2$ decimal places.$)$

$2.$ Compute the fixed overhead budget and volume variances. $($Indicate the effect of each variance by selecting $"$F$"$ for favourable, $"$U$"$ for unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$