Fragrances Unlimited provided the following information.

Actual materials (purchased and used).....................................200,000 ml @ $0.30 per ml

Actual direct labour...........................................................................735 hours @ $14 per hour

Actual variable overhead..................................................................980 machine hours @ $4.90 per machine hour

Actual fixed overhead................................................................$20,000

Materials Price Variance............................................................$10,000 U

Materials Quantity Variance.........................................................$2,000 U

Labour Rate Variance.....................................................................$735 F

Labour Efficiency Variance..............................................................$225 U

Variable Overhead Spending Variance..............................................$98 F

Variable Overhead Efficiency Variance............................................$100 U

Fixed Overhead Budget Variance.................................................$1,250 U

Normal capacity is 5,000 bottles of fragrance. Actual production this quarter was 4,800 bottles of fragrance.

Required:

A. Develop the standard cost card for Fragrances Unlimited. Include materials, labour, variable overhead, and fixed overhead.

B. What was the master budget amount for fixed overhead?

C. What was the applied fixed overhead?

D. What is the fixed overhead volume variance? Explain why it is favourable/unfavourable.

E. Was fixed overhead over or under applied? By how much?