A manufacturer of industrial equipment has a standard costing system based onmachine hours (MHs) as the measure of activity. Data from the company's flexiblebudget for manufacturing overhead are given below:

Denominator Level of Activity

3,900 MHs

StandardOverhead Costs at the Denominator Activity Level:

Variable Overhead Cost

$33,345

Fixed Overhead Cost

$61,425

The following data pertain to operations for the most recent period:

Actual Hours

3,900 MHs

Standard Hours Allowed for the Actual Output

3,952 MHs

Actual Total Variable Overhead Cost

$32,565

Actual Total Fixed Overhead Cost

$60,675

a.

Calculate thePredeterminedOverHeadApplicationRates [POHAR],each rounded to 2

decimals?

b.

Determine the fixed overhead variances

c. How much overhead (in total), was applied to products during the period? Show

thebreakdown.

.ManufacturingOverhead.

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Fixed

ActualBudgetApplied

Explain the impact of the volume variance.