1. Sooner Company applies overhead based on direct labor hours. Last year, the Sooner Company had the following information: Budgeted Actual Overhead $360,000 $359,000 Direct labor hours 120,000 121,000 Calculate the predetermined overhead rate, the applied overhead and the overhead variance. Predetermined overhead rate = $ per direct labor hour Applied overhead = $ Overhead variance = $ $ = $

2. Sooner Company applies overhead based on direct labor hours. Last year, the Sooner Company had the following information:

		Budgeted		Actual
Overhead		$360,000		$370,000
Direct labor hours		120,000		121,000

Calculate the predetermined overhead rate, the applied overhead and the overhead variance.

Predetermined overhead rate	= $ per direct labor hour
Applied overhead	= $
Overhead variance	= $ $ = $

Use the Interactive Graph to answer the following questions:

Change the actual overhead or actual direct labor hours and see what impact that has on applied overhead and the overhead variance.

If the actual overhead increase and nothing else changes, what will be the impact on the predetermined overhead rate and the applied overhead?

Overhead Rate	Applied Overhead

If the actual direct labor hours increase and nothing else changes, what will be the impact on the predetermined overhead rate and the applied overhead?

Overhead Rate	Applied Overhead

If the overhead variance is currently zero, then which of the following must be true?