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 680 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.

Actual (680 units) Indirect materials Indirect labor (Fixed) Manufacturing supervisors salaries (Fixed) Manufacturing office employees salaries (Fixed) Engineering costs Computer costs Electricity (Fixed) Manufacturing building depreciation (Fixed) Machinery depreciation (Fixed) Trucks and forklift depreciation Small tools (Fixed) Insurance (Fixed) Property taxes Standard (1,000 units) $ 9,700 34,700 18,100 10,500 21,800 8,100 2,000 6,400 2,400 1,200 $ 9,900 41,100 17,700 10,100 20,200 8,100 2,000 6,400 2,400 1,200 1,100 600 400 400 200 200 Total $116,100 $120,800 Your answer is correct. Determine the overhead application rate. (Round answer to 2 decimal places, Overhead application rate 23.22 per direct labor hour $ LINK TO TEXT Your answer is correct. Determine how much overhead was applied to production. Applied overhead 104490 Your answer is partially correct. Try again. Calculate the total overhead variance, controllable variance, and volume variance. Total overhead variance 16310 Unfavorable $ Controllable variance 10210 Unfavorable x Volume variance Unfavorable LINK TO TEXT Your answer is correct. Decide which overhead variances should be investigated. Both of the above Click if you would like to Show Work for this question: Open Show Work