Requirements

Calculate the fixed overhead spending variance and indicate whether it is

favorable $(F)$ or unfavorable $(U).$

If Grand Slam uses direct labor$-$hours available at capacity to calculate the

budgeted fixed overhead rate, what is the production$-$volume variance?

Indicate whether it is favorable $(F)$ or unfavorable $(U).$

An unfavorable production$-$volume variance could be interpreted as the

economic cost of unused capacity. Why would Grand Slam be willing to incur

this cost?

Grand Slam's budgeted variable cost per unit is $$23,$ and it expects to sell its

shirts for $$58$ apiece. Compute the sales$-$volume variance and reconcile it with

the production$-$volume variance calculated in requirement $2.$ What does each

concept measure?