Adams Company established a predetermined fixed overhead cost rate of $21 per unit of product. The company planned to make 6,800 units of product but actually produced only 6,400 units. Actual fixed overhead costs were $151,700. Required a. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, Select "None" if there is no effect (i.e., zero variance)
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