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Calculating the Fixed Overhead Spending and Volume Variances
Standish Company manufactures consumer products and provided the following information for the month of February:
| Units produced | 131,100 |
| Standard direct labor hours per unit | 0.2 |
| Standard fixed overhead rate (per direct labor hour) | $2.30 |
| Budgeted fixed overhead | $64,400 |
| Actual fixed overhead costs | $68,800 |
| Actual hours worked | 26,800 |
Required:
1. Calculate the fixed overhead spending variance using the formula approach. $
2. Calculate the volume variance using the formula approach. $
3. What if 128,000 units had actually been produced in February? What impact would that have had? Indicate what the new variances would be below.
| Fixed Overhead Spending Variance | $ | |
| Volume Variance | $ | |
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