Instructions

LaserTune Systems produces laser tuners and allocates manufacturing overhead based on standard machine hours. According to its static budget, LaserTune expected the

following:

$2,880$ machine hours per month tuners @ $0\mathrm{.}25$ machine hours per tuner$)$

Fixed overhead is allocated at $$23$ per standard machine hour

During June, LaserTune actually used $3,220$ machine hours to make $12,200$ tuners and spent $$68,730$ in fixed manufacturing overhead costs.

Q$1$: LaserTune's fixed overhead cost variance is

Q$2$: LaserTune's fixed overhead volume variance is