Jewel Company produces jewelry for a specialized market. The fixed overhead costs for the coming year are budgeted at $705,000 and are allocated on the basis of good units completed. It is expected that 300,000 units will be completed during the year. Good units average 94 percent of total production. During the month of July 30,000 units were produced. The actual fixed overhead per good unit averaged $2.78.
Required (Where necessary, round variances to nearest dollar):
(1) Determine the fixed overhead rate for the year.
(2) Determine the fixed overhead budget variance for the month of July,
(3) Determine the fixed overhead volume variance for the month of July.

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The Answer of Jewel Company produces jewelry for a specialized market. The fixed overhead costs for the coming year are budgeted at $705,000 and are allocated on the basis of good units completed. It is expected that 300,000 units will be completed during the year. Good units average 94 percent of total production. During the month of July 30,000 units were produced. The actual fixed overhead per good unit averaged $2.78.
Required (Where necessary, round variances to nearest dollar):
(1) Determine the fixed overhead rate for the year.
(2) Determine the fixed overhead budget variance for the month of July,
(3) Determine the fixed overhead volume variance for the month of July.

Jewel Company Produces Jewelry for a Specialized Market