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Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company

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Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 128,000 liters at a budgeted price of $285 per liter this year. The standard direct cost sheet for one liter of the preservative follows Direct materials Direct labor (2 pounds @ $18) (0.5 hours @ $52) $36 26 Variable overhead is applied based on direct labor hours. The variable overhead rate is $160 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $24 per unit All non-manufacturing costs are fixed and are budgeted at 52.6 million for the coming year At the end of the year, the costs analyst reported that the sales activity variance for the year was $858.000 unfavorable The following is the actual income statement (in thousands of dollars) for the year. $25,098 Sales revenue Less variable costs Direct materials Direct labor Variable overhead Total variable costs Contribution margin Less fixed costs Fixed manufacturing overhead Non manufacturing costs Total fixed costs Operating profit 3,718 3,110 9,230 $16,058 $19,040 3.290 1.370 $4,660 $14,380 The following is the actual income statement in thousands of dollars) for the year $35,091 3,718 3. 110 9,230 $16,858 $19,040 Sales revenue Less variable costs Direct materials Direct labor Variable overhead Total variable costs Contribution margin Less fixed costs Fixed manufacturing overhead Non-manufacturing costs Total fixed costs Operating profit 3,290 1,370 $14, 380 Required: What are the fixed overhead price and production volume variances for Paynesville? (Enter your answers in whole dollars. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option) U Fixed overhead price variance Fixed overhead production volume variance

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