(Missing data, three-variance approach) The flexible budget formula for total overhead for the Compass Division of Maritime Products Company is $360,000 + $8 per direct labor hour. The combined overhead rate is $20 per direct labor hour. The following data have been recorded for the year:

Use a three-variance approach to determine the following:

a. Number of standard hours allowed

b. Actual hours of direct labor worked.LO1

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Actual total overhead for 1997 Total overhead spending variance Volume variance $580,000 $ 16,000 U $ 24,000 U