Fletcher Products Inc. wants greater cost consciousness and cost responsibility among its departmental supervisors. Service department costs have been allocated to the producing departments using predetermined rates for some time. Now management asks the Cost Department, with the cooperation of the departmental supervisors, not only to prepare departmental budgets but also to give the supervisors monthly reports for cost control information.
The company operates three producing departments, A, B, and C, and two service departments, Repairs and Maintenance, and Utilities. For the year 20A, the Cost Department prepared the following departmental factory overhead budgets and determined the factory overhead rates based on direct labor hours:

Actual cost and operating data before allocation of service department costs at the end of the budget period are:

Required:
(1) Compute the amount of factory overhead applied for each of the three producing departments.
(2) Compute the amount of over- or under applied factory overhead for each of the three producing departments. To determine actual overhead in the producing departments, charge service department costs on the basis of actual kilowatt-hours and actual labor hours multiplied by the predetermined billing rate.
(3) Compute the total variance for each of the two service departments.

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Producing Departments Service Departments Repairs and Maintenance Utilities C $52,000 $52.450 $41,900 $56,000 $49,000 Total budgeted expense... Allocation of service department cost 14,000 570 2,250 7,000 49,000) Repairs and maintenance (based on labor hours)... 18,00027.900 100(63,000) 20,000 $.90 Total. Bases: Kilowatt-hours (KWH) 000 $96.100 $71,250 40,000 20,000 ー -= -= 45,000 31,000 35,000 19,000 Direct labor hours (DLH) $.35 per DLH per KWH $4.20 per DLH $3.10 per DLH Departmental overhead rates.. $3.75 per DLH Producing Departments Service Departments C Maintenance Utilities $56,020 $52850$42,58056320$50,040 Repairs and Total actual expense.. Operating data: Direct labor hours... 20,480 39,300 29,850 46,200 20,100 35,800 Kilowatt-hours.. 18,950