Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

Total budgeted fixed overhead cost for the year

$467,500

Actual fixed overhead cost for the year

$458,000

Budgeted standard direct labor-hours (denominator level of activity)

55,000

Actual direct labor-hours

56,000

Standard direct labor-hours allowed for the actual output

53,000

Required:

1.

Compute the fixed portion of the predetermined overhead rate for the year

Fixed overhead
Denominator level of activity
Fixed portion of the predetermined overhead rate	0

Compute the fixed overhead budget variance and volume variance

	Budget Variance
Actual fixed overhead cost for the year
Budgeted fixed overhead cost
Budget variance
	Volume Variance
Fixed portion of the predetermined overhead rate		per DLH
Denominator hours		DLHs
Standard hours allowed		DLHs
Volume variance