Innovation Inc.'s production budget for January is 35,000 units and includes the following component unit costs: direct materials, $16; direct labor, $20; variable overhead, $12.Budgeted fixed overhead is $70,000 (35,000 units × 1/2 hour × $4 unit).Actual production in January was 36,000 units.Actual unit component costs incurred during January include direct materials, $16.50; direct labor, $18.90; variable overhead, $13.64.Actual fixed overhead was $67,000.The standard fixed overhead application rate per unit consists of $4 per machine hour and each unit is allowed a standard of 1/2 hour of machine time.
Calculate the fixed overhead budget variance and the fixed overhead volume variance.

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The Answer of Innovation Inc.'s production budget for January is 35,000 units and includes the following component unit costs: direct materials, $16; direct labor, $20; variable overhead, $12.Budgeted fixed overhead is $70,000 (35,000 units × 1/2 hour × $4 unit).Actual production in January was 36,000 units.Actual unit component costs incurred during January include direct materials, $16.50; direct labor, $18.90; variable overhead, $13.64.Actual fixed overhead was $67,000.The standard fixed overhead application rate per unit consists of $4 per machine hour and each unit is allowed a standard of 1/2 hour of machine time.
Calculate the fixed overhead budget variance and the fixed overhead volume variance.