Brief Exercise $11-7$ Computing Fixed Overhead Variances $($LO$2-$ CC$11,12)$

LatAm Inc. 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:

Required:

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

Compute the fixed overhead budget variance and volume variance. $($Indicate the effect of each variance by selecting $"$F$"$ for

favourable, $"$U$"$ for unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$