Holl Corporation has provided the following data for November.
Required:
a. Compute the budget variance for November.
b. Compute the volume variance for November.

a. Budget variance = Actual fixed manufacturing overhead cost − Budgeted fixed manufacturing overhead cost = ${{[a(4)]:#,###}} − ${{[a(2)]:#,###}} = ${{[a(7)]:#,###}} Favorable
b. Fixed portion of the predetermined overhead rate = ${{[a(2)]:#,###}} ÷ {{[a(1)]:#,###}} machine-hours = ${{[a(5)]:#,##0.00}} per machine-hour
Volume variance = Fixed portion of the predetermined overhead rate × (Denominator hours − Standard hours allowed)
= ${{[a(5)]:#,##0.00}} per machine-hour × ({{[a(1)]:#,###}} machine-hours − {{[a(3)]:#,###}} machine-hours)
= ${{[a(5)]:#,##0.00}} per machine-hour × ({{[a(6)]:#,###;'−'#,###}} machine-hours)
= ${{[a(8)]:#,###}} Favorable