Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year $446,400
Actual fixed overhead cost for the year $440,000
Budgeted direct labor-hours (denominator level of activity) 62,000
Actual direct labor-hours 63,000
Standard direct labor-hours allowed for the actual output 60,000

Required:
a. Compute the fixed portion of the predetermined overhead rate for the year.
b. Compute the fixed overhead budget variance and volume variance.