1. Quiz Company uses a normal, functional-based (traditional) cost system and applies overhead based on direct labor hours. The following information is available for the year.

	Estimated	Actual
Overhead cost	$400,000	$440,000
Direct labor hours	40,000	50,000

Calculate the applied overhead for the year.

Note: Give our answer using dollar signs and commas but not decimal points (cents).

2.

Quiz Company reported the following amounts for the year.

Estimated overhead	$120,000
Applied overhead	123,000
Actual overhead	119,000

Determine the overhead variance for the year.