Denominator level of activity…………………………………………. 1,600 machine-hours Budgeted fixed manufacturing over

Denominator level of activity…………………………………………. 1,600 machine-hours Budgeted fixed manufacturing overhead
costs……………..$42,400 Fixed portion of the predetermined overhead rate…………$26.50 per machine-hour Actual level of
activity………………………………………………………1,700 machine-hours Standard machine-hours allowed for the actual output…2,000 machine-
hours Actual fixed manufacturing overhead costs……………………$41,740 Required: a. Compute the budget variance for September. Show your work! b. Compute
the volume variance for September. Show your work!

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