Cullumber Company produces one product, a putter called GO-Putter. Cullumber uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 105,000 units per year. The total budgeted overhead at normal capacity is $945,000 comprised of $367,500 of variable costs and $577,500 of fixed costs. Cullumber applies overhead on the basis of direct labor hours. During the current year, Cullumber produced 72,600 putters, worked 86,400 direct labor hours, and incurred variable overhead costs of $296,020 and fixed overhead costs of $392,400.

Variable

Fixed

Predetermined Overhead Rate $ $

Compute the applied overhead for Byrd for the year.

Overhead Applied $

Compute the total overhead variance.

Total Overhead Variance $ FavorableUnfavorableNeither favorable nor unfavorable