Refer to the information for Drink Well in PA10-1.

Required:

Compute the following for Drink Well:

1. Fixed overhead spending variance.

2. Fixed overhead volume variance.

3. Total over- or underapplied fixed manufacturing overhead.

Data from PA10-1

Drink Well, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows:

Drink Well had the following actual results last year:

Transcribed Image Text:

Direct costs Clay Direct labor Variable MOH Fixed MOH ($250,000/100,000 units) Standard Quantity Standard Price (Rate) Standard Unit Cost 1.5 lbs. $ 1.60 per lb. $ 2.40 1.5 hrs. 12.00 per hr. 18.00 1.20 per direct labor hour 1.80 2.50