As shown in Exhibit 8-2, the budgeted fixed overhead ($276,000) will be the lump sum
shown in the static budget and also in any flexible budget within the relevant range. Fixed
overhead allocated ($230,000) is the amount of fixed overhead costs allocated; it is calculated
by multiplying the number of output units produced during the budget period (10,000 units)
by the budgeted cost per output unit ($23). The $46,000 U production-volume variance can