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 700 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 (700 units)
Indirect materials		$ 9,800			$ 10,100
Indirect labor		35,200			41,800
(Fixed) Manufacturing supervisors salaries		18,400			18,000
(Fixed) Manufacturing office employees salaries		10,600			10,200
(Fixed) Engineering costs		22,100			20,500
Computer costs		8,200			8,200
Electricity		2,000			2,000
(Fixed) Manufacturing building depreciation		6,500			6,500
(Fixed) Machinery depreciation		2,500			2,500
(Fixed) Trucks and forklift depreciation		1,200			1,200
Small tools		600			1,200
(Fixed) Insurance		400			400
(Fixed) Property taxes		300			300
Total		$117,800			$122,900

	Your answer is correct.

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

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	Your answer is correct.

Determine how much overhead was applied to production.

Applied overhead

$Type your answer here

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	Your answer is partially correct. Try again.

Calculate the total overhead variance, controllable variance, and volume variance. (Round variable overhead to 2 decimal places and final answers to 0 decimal places, e.g. 1,575.)

Total overhead variance		$	Neither favorable nor unfavorableUnfavorableFavorable
Controllable variance		$	FavorableUnfavorableNeither favorable nor unfavorable
Volume variance		$	Neither favorable nor unfavorableFavorableUnfavorable

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	Your answer is correct.

Decide which overhead variances should be investigated. Choose your answer here

Controllable varianceVolume varianceBoth of the aboveNeither of the above