Question:

Rosemary Corporation is an exclusive jewelry designer and manufacturer.

The following standard costs were used for one of its products:

Standard Cost per UnitTotalFixed overhead8 hours @ $60 per hour$480

Overhead is applied to products on the basis of standard direct labor hours for actual production.

The following information is available regarding the company's operations for the period:

Actual units produced50 unitsTotal actual direct labor hours18,000 hoursActual fixed manufacturing overhead incurred$36,000Budgeted fixed manufacturing overhead for the period$28,800Budgeted units for the period60 units

Required:

Calculate the fixed overhead variances.

Use your answer to answer the following questions.

NOTE:Please enter all variances as positive numbers.

The amount of the fixed overhead spending variance for the period is $______________.

Indicate if the fixed overhead spending variance is favourable (enter the letter F) or unfavourable (enter the letters UF).

The amount of the fixed overhead volume variance for the period is $______________.

Indicate if the fixed overheadvolume variance is favourable (enter the letter F) or unfavourable (enter the letters UF).