Jones Industries produces high-end flutes for professional musicians across the globe. Actual fixed manufacturing overhead for the year was $1,240,000, while the budgeted fixed manufacturing overhead was $1,275,000. Using a standard costing system, the company allocated $1,200,000 of overhead to production. Part 1: Word Bank for Fill-in-the-Blank Fixed overhead variance formula: Part 1A: What does the overhead variance tell managers? The variance tells managers that Jones (overallocated or underallocated) manufacturing overhead by this amount. Part 2: Word Bank for Fill-in-the-Blank Fixed overhead budget variance: Part 2A: What does the fixed overhead budget variance tell managers? The variance tells managers that Jones actually incurred (less or more) for manufacturing overhead than they would have expected for the actual volume produced during the year. Part 3:

Word Bank for Fill-in-the-Blank Fixed overhead production volume variance formula: Part 3A: What does the fixed overhead production volume variance tell managers? Managers can tell from the variance amount that the total overhead variance arose because Jones produced (fewer or more) flutes than originally expected. It is (favorable or unfavorable), because Jones used its plant capacity (less or more) efficiently originally anticipated. Please refrain from partially answering the question, and please label which part of the question you are answering so that I may follow along. Thank you!

Requirement 1. Calculate the total fixed overhead variance. What does this tell managers? Begin by determining the formula for the fixed overhead budget variance, then compute the variance. (Abbreviation used: Std. Standard. Enter the variance as a positive number. Label the variance as favorable (F) or unfavorable (U).) Fixed - o overhead variance What does the total overhead variance tell managers