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In addition to other costs, Fenwick Telephone Company planned to incur $475,200 of fixed manufacturing overhead in making 352,000 telephones. Fenwick actually produced 361,000 telephones, incurring actual overhead costs of $484,200. Fenwick establishes its predetermined overhead rate based on the planned volume of production. Determine whether sections B and C are favorable, unfavorable or neither.
Required:
a.Calculate the predetermined overhead rate.Predetermined overhead rate $ per unit
b.Determine the total fixed cost spending variance and indicate the effect of the variance by selecting "Favorable", "Unfavorable", or "None".Total fixed cost spending variance
c.Determine the total fixed cost volume variance and indicate the effect of the variance by selecting "Favorable", "Unfavorable", or "None".
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