Q14- Sipple Furnitures master budget for the year includes $365,400 for fixed supervisory salaries. Practical capacity, which is used to set the fixed overhead allocation rate, is 680 units per month. Supervisory salaries are expected to be incurred uniformly throughout the year. During August, the company produced 430 units, incurred production supervisory salaries of $29,900, and reported underapplied fixed overhead of $23,000 for supervisory salaries. What is Sipple Furnitures supervisory salaries spending (budget) variance for August? Is this variance favorable (F) or unfavorable (U)?

Q20- Baxter Corporations master budget calls for the production of 5,500 units per month and $191,400 indirect labor costs for the year. Baxter considers indirect labor as a component of variable factory overhead cost. During April, the company produced 4,550 units and incurred indirect labor costs of $11,600. What amount would be reported in April as a flexible-budget variance for indirect labor? Is this variance favorable (F) or unfavorable (U)?