Rich Company, which uses a standard cost system, budgeted $800,000 of fixed overhead when 50,000 machine hours were anticipated. Other data for the period were:
Actual units produced:10,600
Actual machine hours worked:51,800
Actual variable overhead incurred:$ 475,000
Actual fixed overhead incurred: $ 790,100
Standard variable overhead rate per machine hour: $8.50
Standard production time per unit: 5 hours
Question A: What is Rich's variable overhead efficiency?
Question B: What is Rich's fixed overhead budget variance?