Robbie Wallace is an inspector who earns a base salary of $$4,800$ per month plus a piece rate of $40$ cents per bundle inspected. His company accounts for inspection costs as manufacturing overhead. Because of a payroll department error in June, Robbie was paid $$3,600$ plus a piece rate of $60$ cents per bundle. He received gross wages totaling $$5,040.$

Hint: Robbie$$s compensation has both paid $$3,600$ plus a piece rate of $60$ cents per bundle. He received gross wages totaling $$5,040.$

Hint: Robbie$$s compensation has both fixed and variable components.

Effect on variable overhead spending variance:

Effect on fixed overhead budget variance: