Ana Carillo and Associates is a medium-sized company located near a large metropolitan area in the Midwest. The company manufactures cabinets of mahogany, oak, and other fine woods for use in expensive homes, restaurants, and hotels. Although some of the work is custom, many of the cabinets are a standard size. One such non-custom model is called Luxury Base Frame. Normal production is 1,000 units. Each unit has a direct labor hour standard of 5 hours. Overhead is applied to production based on standard direct labor hours. During the most recent month, only 950 units were produced; 4,500 direct labor hours were allowed for standard production, but only 4,000 hours were used. Standard and actual overhead costs were as follows.

		Standard (1,000 units)			Actual (950 units)
Indirect materials		$ 12,800			$ 13,100
Indirect labor		45,700			54,300
(Fixed) Manufacturing supervisors salaries		23,900			23,400
(Fixed) Manufacturing office employees salaries		13,800			13,300
(Fixed) Engineering costs		28,700			26,600
Computer costs		10,600			10,600
Electricity		2,700			2,700
(Fixed) Manufacturing building depreciation		8,500			8,500
(Fixed) Machinery depreciation		3,200			3,200
(Fixed) Trucks and forklift depreciation		1,600			1,600
Small tools		700			1,500
(Fixed) Insurance		500			500
(Fixed) Property taxes		300			300
Total		$153,000			$159,600

(a)

New attempt is in progress. Some of the new entries may impact the last attempt grading.

Your answer is incorrect.

Determine the overhead application rate. (Round answer to 2 decimal places, e.g. 15.75.)

Overhead application rate		$Type your answer here	per direct labor hour

Determine how much overhead was applied to production.

Applied overhead $____________________

Calculate the total overhead variance, controllable variance, and volume variance.

Total overhead variance $________________________ favorable or unfavorable

Controllable variance $ ___________________________ favorable or unfavorable

Volume variance $ _______________________________ favorable or unfavorable