At the beginning of last year, Diekow Productions set budgeted fixed overhead costs at $456,000. During the

Question:

At the beginning of last year, Diekow Productions set budgeted fixed overhead costs at $456,000. During the year, actual fixed overhead costs were $500,000. Using this information and the applicable information in E 6, calculate Diekow Production’s fixed overhead budget and volume variances for the year. Assume that fixed overhead is applied based on units of product.