Expand Your Critical Thinking 24-02 a-d 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 940 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 (940 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 Total Standard (1,000 units) $ 12,500 44,800 23,400 13,500 28,100 10,400 2,600 8,300 3,100 1,600 700 500 300 $149,800 $ 12,800 53,100 22,900 13,000 26,000 10,400 2,600 8,300 3,100 1,600 1,500 500 300 $156, 100 Determine the overhead application rate. (Round answer to 2 decimal places, c.g. 15.75.) Overhead application rate per direct labor hour $ Determine how much overhead was applied to production. Applied overhead $ LINK TO TEXT 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 $ Controllable variance $ Volume variance