To the Point Manufacturing Company uses the standard costing method. The company’s main product is a fine-quality fountain pen that normally takes 2.5 hours to produce. Normal annual capacity is 30,000 direct labor hours, and budgeted fixed overhead costs for the year were $15,000, During the year, the company produced and sold 14,000 units. Actual fixed overhead costs were $19,000. Compute the fixed overhead rate per direct labor hour, and determine the fixed overhead budget and volume variances.