Rudolph Steins, a Bavar- ian ceramic stein maker, has an overhead cost function in German marks of DM400,000 plus DM4 per stein. The original budget for 1998 used 200,000 steins as its normal capacity. This cost function and the normal capacity are used to cost each stein. Sales were unusually good in 1998. Rudolph produced and sold 245,000 steins. Variable costs totaled DM992,000, and fixed costs were DM445,000. Because of the higher volume, extra overtime of DM40,000 was incurred and added to variable costs. Also, extra supervision salaries added DM40,000 to fixed costs. 

Required: 

1. Looking only at total variable and fixed costs, were Rudolph's costs well con- trolled in 1998? Explain. 

2. If the extra production costs are excluded for the analysis, were Rudolph's other costs well controlled? Explain. 

3. Show how much overhead cost was added to products. Comment on overapplied or underapplied overhead.