Assume the following facts:

Estimated manufacturing tm nnn ^ ^cin x, t^- iu u ^

overhead for Year 1 = ^^^'^ + ^^^^ ^ ^''^""^ labor-hours)

Estimated direct labor-hours for Year 1 = 1 ,000 hours

a. Compute the predetermined overhead rate per direct labor hour.

b. What is the expected manufacturing overhead for each of the following levels of activity:

(1) 800 direct labor-hours?

(2) 1,000 direct labor-hours?

(3) 1,200 direct labor-hours?

c. During Year I, the company works 800 direct labor-hours on job 21 and 400 direct labor-hours on job 22. The actual manufacturing overhead was $37,000.

What is the amount of overhead applied to each job?

d. What is the:

(1) Total under- or overapplied overhead?

(2) Spending variance?

(3) Production volume variance?