xercise $16-50($Algo$)$ Fixed Cost Variances $($LO $16-6)$

Golden Food Products produces special$-$formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell $124,500$ cases at a budgeted price of $$69$ per case this year. The standard direct cost sheet for one case of pet food follows:

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Direct materials$(3$ pounds @ $$2)$$ $6$Direct labor$(0\mathrm{.}25$ hours @ $$32)8$

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Variable overhead is applied based on direct labor$-$hours. The variable overhead rate is $$16$ per direct labor$-$hour. The fixed overhead rate $($at the master budget level of activity$)$ is $$12$ per unit. All nonmanufacturing costs are fixed and are budgeted at $$2\mathrm{.}2$ million for the coming year.

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At the end of the year, the costs analyst reported that the sales activity variance for the year was $$408,000$ favorable.

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The following is the actual income statement $($in thousands of dollars$)$ for the year for Golden Food Products:

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Sales revenue$ $7,800$Less variable costs$$Direct materials$800$Direct labor$992$Variable overhead$515$Total variable costs$ $2,307$Contribution margin$ $5,493$Less fixed costs$$Fixed manufacturing overhead$1,525$Nonmanufacturing costs$2,170$Total fixed costs$ $3,695$Operating profit$ $1,798$

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Required:

What are the fixed overhead price and production volume variances for Golden Food Products?