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Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no Inventories. The master budget calls for the company

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Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no Inventories. The master budget calls for the company to manufacture and sell 100,000 liters at a budgeted price of $75 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials Direct labor (2 pounds @ 54) (0.5 hours $24) 58 12 Variable overhead is applied based on direct labor hours. The variable overhead rate is $20 per direct labor hour. The fixed overhead rate (at the master budget level of activity is $10 per unit. All non-manufacturing costs are forced and are budgeted at $1 coming year At the end of the year, the costs analyst reported that the sales activity variance for the year was $270,000 unfavorable. The following is the actual Income statement (in thousands of dollars) for the year. 57.218 1. Sales revenue Less variable costs Direct Saterials Direct labor Variable overhead Total variable costs Contribution margin Less flood costs Fixed snufacturing overhead Non-anufacturing costs Total fixed costs Operating profit Required: What are the fixed overhead price and production volume variances for Paynes (Enter your answers in whole dollars. Indicate the effect of each verlance by selecting F for favorable, or "U" for unfavorable. If there is no effect, do not select either option) The following is the actual income statement in thousands of dollars for the year $7.238 1,810 Sales revenue Less variable costs Direct materials Direct labor Variable overhead Total variable costs Contribution wargin Less fixed costs Fixed manufacturing overhead Non-anufacturing costs Total Fixed costs Operating profit $2,588 54, 55e 1.se 52, 280 $ 2.279 Required: What are the fixed overhead price and production volume variances for Paynesville? (Enter your answers in whole dollars. Indicate the effect of each variance by selecting for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Fixed overhead price variance Fised overhead production volume variance

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