Problem 8-23A (Static) Computing materials, labor, and cost variances LO 8-5, 8-6

The following data were drawn from the records of Quentin Corporation.

Planned volume for year (static budget)	6,000	units
Standard direct materials cost per unit	3.1	pounds @ $3.00 per pound
Standard direct labor cost per unit	2	hours @ $8.00 per hour
Total expected fixed overhead costs	$ 56,400
Actual volume for the year (flexible budget)	6,300	units
Actual direct materials cost per unit	2.7	pounds @ $4.00 per pound
Actual direct labor cost per unit	2.3	hours @ $7.20 per hour
Total actual fixed overhead costs	$ 45,000

Required

a. Calculate the predetermined overhead rate, assuming that Quentin uses the number of units as the allocation base.

b. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U).

c. Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U).