The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply factory overhead: Actual total factory overhead cost $24,000 Actual fixed overhead cost $10,000 Budgeted fixed overhead cost $11,000 Actual machine hours 5,000 Standard machine hours for the units manufactured 4,800 Denominator volumemachine hours 5,500 Standard variable overhead rate per machine hour $3

1. What is fixed overhead spending variance?

2. What is production volume variance?