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Glavine & Co. produces a single product, each unit of which requires three direct labor hours (DLHs). Practical capacity (for setting the factory overhead application

Glavine & Co. produces a single product, each unit of which requires three direct labor hours (DLHs). Practical capacity (for setting the factory overhead application rate) is 54,000 DLHs, on an annual basis. The information below pertains to the most recent year:






Standard direct labor hours (DLHs) per unit produced


3.00



Practical capacity, in DLHs (per year)


54,000



Variable overhead efficiency variance

$

17,000


unfavorable (U)

Actual production for the year


15,500


units

Budgeted fixed manufacturing overhead

$

1,080,000



Standard direct labor wage rate

$

20.00


per DLH

Total overhead cost variance for the year

$

170,000


favorable (F)

Direct labor efficiency variance

$

34,000


unfavorable (U)


Required:

1. What was the actual number of direct labor hours (DLHs) worked during the year?

2. What was the standard variable overhead rate per DLH during the year?

3. What was the total overhead application rate per direct labor hour (DLH) during the year?

4. What was the total actual overhead cost incurred during the year?

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