Question - Fargo Corporation reported a $350 favorable price variance for variable overhead and a $4,160 favorable price variance for fixed overhead. The flexible budget had $255,180 variable overhead based on 42,530 direct labor-hours; only 42,170 hours were worked. Total actual overhead was $421,070. The number of estimated hours for computing the fixed overhead application rate totaled 43,140 hours.
Required:
(a) Compute the variable overhead variance.
(b) Compute the fixed overhead variance.