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	$250,000
Actualy fixed overhead cost for the year	$254,000
Budgeted direct labor-hours (denominator level of activity)	25,000
Actual direct labor-hours	27,000
Standard direct labor-hours allowed for the actual output	26,000

REQUIRED:

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

2. Compute the fixed overhead budget variance and volume variance.