RearGrade Systems produces laser tuners and allocates manufacturing overhead based on standard machine hours. According to its static budget, RearGrade expected the following:

2,800 machine hours per month (11,520 tuners at 0.25 machine hours per tuner) and 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.

RearGrade's fixed overhead cost variance is: a) 5,330 unfavorable b) 5,330 favorable c) 2,490 unfavorable d) 2,490 favorable

RearGrade's fixed overhead volume variance is: a) 2,490 unfavorable b) 3,910 favorable c) 3,910 unfavorable d) 5,330 favorable