Primara Corporation has a standard costing system in which it applies overhead to products on the basis of the standard direct labour-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.........................................................$500,000
Actual fixed overhead cost for the year.........................................................................$508,000

Budgeted standard direct labour-hours (denominator level of activity).......................50,000
Actual direct labour-hours...................................................................................................54,000
Standard direct labour-hours allowed for the actual output..........................................52,000

Required:

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

2. Compute the fixed overhead budget variance and volume variance.