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indsor and Associates is a medium$-$sized company located near a large metropolitan area in the Prairies. The company manufactures cabinets of mahogany, oak, and other fine woods for use in expensive homes, restaurants, and hotels. Although some of the work is custom, many of the cabinets are a standard size.

One non$-$custom model is called the Luxury Base Frame. Normal production is $1,000$ units per month. Each unit has a direct labour hour standard of $5$ hours. Overhead is applied to production based on standard direct labour hours. During the most recent month, only $680$ units were produced; $4,500$ direct labour hours were allowed for standard production, but only $4,000$ hours were used.

Standard and actual overhead costs were as follows:

Standard $(1,000$ units$)$

Actual $(680$ units$)$

Indirect materials

$$9,700$

$$9,900$

Indirect labour

$34,700$

$41,100$

Manufacturing supervisors, salaries $($fixed$)$

$18,100$

$17,700$

Manufacturing office employees, salaries $($fixed$)$

$10,500$

$10,100$

Engineering costs $($fixed$)$

$21,800$

$20,200$

Computer costs

$8,100$

$8,100$

Electricity

$2,000$

$2,000$

Manufacturing building depreciation $($fixed$)$

$6,400$

$6,400$

Machinery depreciation $($fixed$)$

$2,400$

$2,400$

Trucks and forklift depreciation $($fixed$)$

$1,200$

$1,200$

Small tools

$600$

$1,100$

Insurance $($fixed$)$

$400$

$400$

Property taxes $($fixed$)$

$200$

$200$

Total

$$116,100$

calculate the overhead budget variance and the overhead volume variance?

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