Spindle Corp manufactures chairs. For 2020, the company expects fixed overhead costs of $229,500. Spindle uses machine-hours to allocate fixed overhead costs and anticipates 6,750 hours during the year to manufacture 27,000 chairs. During 2020, Homespun manufactured 26,000 chairs and spent $226,000 on fixed overhead costs.

Caluculate

1. The fixed overhead rate for 2020 (fixed overhead rate per hour)
2. The fixed overhead spending variance for 2020 (indicate favorable or unfavorable)
3. The production volume variance for 2020 (indicate favorable or unfavorable)