Swiss Company makes large decorative clocks. The budgeted fixed overhead costs for 2020 totalled $27,000. The company uses direct labour hours for fixed overhead allocation and anticipated it would use 900 hours during 2020 to make 45,000 clocks.

The actual number of clocks produced in 2020 was 48,000 and they required 960 labour hours to make. Actual spending on fixed overheads was $28,000.

Required: 1. Compute the fixed overhead spending variance. (4 marks) 2. Compute the production volume variance. (4 marks)