Lusive Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

Total budgeted fixed overhead cost for the year . . . . . . . . . . . . . . . . . . . . . . . $400,000

Actual fixed overhead cost for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $394,000

Budgeted standard direct labor-hours (denominator level of activity) . . . . . . . . . 50,000

Actual direct labor-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,000

Standard direct labor-hours allowed for the actual output . . . . . . . . . . . . . . . . . . 48,000

Required:

1. Compute the fixed portion of the predetermined overhead rate for the year.

2. Compute the fixed overhead budget and volume variances.