Monroe Corporation budgeted fixed costs of $250,000 for the current year.The company expected to make 20,000 units during the year.Actual fixed costs were $256,000,and Monroe actually made 22,000 units of product.
Required:
(a)Calculate the fixed cost spending variance and indicate whether it is favorable or unfavorable.
(b)Calculate the fixed cost volume variance and indicate whether it is favorable or unfavorable.Explain why the variance is favorable or unfavorable.

Question

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The Answer of Monroe Corporation budgeted fixed costs of $250,000 for the current year.The company expected to make 20,000 units during the year.Actual fixed costs were $256,000,and Monroe actually made 22,000 units of product.
Required:
(a)Calculate the fixed cost spending variance and indicate whether it is favorable or unfavorable.
(b)Calculate the fixed cost volume variance and indicate whether it is favorable or unfavorable.Explain why the variance is favorable or unfavorable.

Monroe Corporation Budgeted Fixed Costs of $250,000 for the Current