(a) Determine the overhead application rate.

(b) Determine how much overhead was applied to production.

(c) Calculate the total overhead variance, controllable variance, and volume variance.

(d) Decide which overhead variances should be investigated.

(e) Discuss causes of the overhead variances. What can management do to improve its performance nextmonth?

Expand Your Critical Thinking 24-2 (Part Level Submission) Ana Canlla and Assodates is a medium-sized company located near a large metropolitan area in the Midwest. The company manufactures cabiners of mahogany, oak, and cther fine waods for use in expensive homes, restaurants, and hatels. Although some of the work is custam, many of the cabinets are a standard size. One such non-custorm model is called Luxury Base Frame. Normal praduction is 1,140 units. Eech unit has a direct labor hour standard of S hours. Overhead is applied to production based on standard direct labor haurs. During the most recent month, only 1,030 units were produced; 5,100 direct labor hours were allowed for standard production, but only 4,600 hours were used. Standard and actual averhead costs were as fallows Standard (1,140 units) s 13,900 (1,030 units) Indirect materials Indirect labor (Fixed) Manufacturing supervisors salaries (Fixed) Manufacturing office employees salaries (Fixod) Engincering costs Computer costs $ 14,300 59,30D SD,GOD 14,500 2,SOD (Fixed) Manufacturing building depreciation (Fixed) Machinery depreciation (Fixed) Trucks and fork ift depreciation 1,700 (Fixed) Insurance (Fixod) Property taxes Total $167,3401 174,360 Determine the overhead application rate. (Round answer to 2 decimal places, e.g. 15.75.) Overhead application rate per direct lahor hour