RearGrade Systems produces laser tuners and allocates manufacturing overhead based on standard machine hours. According to its static budget, RearGrade expected the following: 2,880 machine hours per month (11,520 tuners @ 0.25 machine hours per tuner) Fixed overhead is allocated at $23 per standard machine hour During June, RearGrade actually used 3,220 machine hours to make 12,200 tuners and spent $68,730 in fixed manufacturing overhead costs. 8. RearGrades fixed overhead cost variance is A. $5,330 U. B. $5,330 F. C. $2,490 U. D. $2,490 F. 9. RearGrades fixed overhead volume variance is A. $2,490 U. B. $3,910 F. C. $3,910 U. D. $5,330 F. 10. Which of the following statements about variance journal entries is true? A. Favorable variances are credited because they increase operating income. B. Favorable variances are credited because they decrease operating income. C. Unfavorable variances are credited because they increase operating income. D. Unfavorable variances are debited because they increase operating income.