actual fixed costs were $\backslash (\backslash$$ $11,800\backslash ).$ Read the requirements. variance? Indicate whether it is favorable $($ F $)$ or unfavorable $($U$).$ Begin by determining the formula then computing the fixed overhead rate per direct labor hour. $($Round the fixed overhead rate to the nearest cent.$)$ Requirements $1.$ Calculate the fixed overhead spending variance and indicate whether it is favorable $($F$)$ or unfavorable $($U$).2.$ If Watson uses direct labor$-$hours available at capacity to calculate the budgeted fixed overhead rate, what is the production$-$volume variance? Indicate whether it is favorable $($ F $)$ or unfavorable $($U$).3.$ An unfavorable production$-$volume variance could be interpreted as the economic cost of unused capacity. Why would Watson be willing to incur this cost? $4.$ Sunny Day's budgeted variable cost per unit is $\backslash (\backslash$$ $30\backslash ),$ and it expects to sell its shirts for $\backslash (\backslash$$ $54\backslash )$ apiece. Compute the sales$-$volume variance and reconcile it with the production$-$volume variance calculated in requirement $2.$ What does each concept measure? During March, Watson produced $750$ shirts and actual fixed costs were $\backslash (\backslash$$ $11,800\backslash ).$

Read the requirements. what is the production$-$volume variance? Indicate whether it is favorable $($F$)$ or unfavorable $($U$).$

Begin by determining the formula then computing the fixed overhead rate per direct labor hour. $($Round the fixed overhead rate to the nearest cent.$)$

Next, complete the following table. Requirements

$1.$ Calculate the fixed overhead spending variance and indicate whether it is favorable $($F$)$ or unfavorable $($U$).$

$2.$ If Watson uses direct labor$-$hours available at capacity to calculate the budgeted fixed overhead rate, what is the production$-$volume variance? Indicate whether it is favorable $($F$)$ or unfavorable $($U$).$

$3.$ An unfavorable production$-$volume variance could be interpreted as the economic cost of unused capacity. Why would Watson be willing to incur this cost?

$4.$ Sunny Day's budgeted variable cost per unit is $\backslash (\backslash$$ $30\backslash ),$ and it expects to sell its shirts for $\backslash (\backslash$$ $54\backslash )$ apiece. Compute the sales$-$volume variance and reconcile it with the production$-$volume variance calculated in requirement $2.$ What does each concept measure?