Computing overhead and analyzing volume and spending variances. Selected data for Brown & Brown Inc. for the year 19X7 follows:

Instructions 1. Compute the overhead application rate.
2. Compute the applied overhead for the year.
3. Compute the total overapplied or underapplied overhead for the year.
4. Analyze the total overapplied or underapplied overhead into a volume variance and a spending variance.

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Direct Labor Hours Manufacturing Overhead Budgeted for Year 60.000 Actual for Year 62.400 Fixed Variable Total Overhead $ 42,000 168,000 $210.000 $ 42,000 171,100 $213,100 Overhead is applied on the basis of direct labor hours.