Regency Corp

Essay

Regency Corp. uses a standard cost system to account for the costs of its one product. Fixed overhead is applied to production at a rate of $27.50 per unit, based on budgeted production is 2,500 per month. During November, Regency produced 2,300 units. Fixed overhead incurred totaled $70,310. Calculate the:
a. fixed overhead spending variance.
b. fixed overhead volume variance.
c. over- or under-applied fixed overhead.