REQUIRED: Calculate the fixed overhead budget variance (the normal volume is 20,000 units) and fixed overhead sales volume variance. Also, please explain how the given amt. of normal volume of 20,000 units is used in the calculation of the answer.

Valley Company uses a standard cost system to control production costs. For 2018, the following data is available: Actual Standard/Budget Production 22,000 units Direct materials Quantity 100,000 kg 5 kg per unit of output (production) Cost $185,000 $1.60/kg Direct labor Hours 10,500 hours 1 hour per unit of output (production) Cost $160,000 $12/hour Overhead cost $205,000 (30% fixed) $200,000 (40% fixed) Variable overhead is applied on the basis of direct labor-hours. The application rate is $6 per direct labor-hour