Glavine and Company produces a single product, each unit of which requires three direct labor hours (DLHs). Practical capacity or setting the factory overhead application rate is 34,000 DLHs based on an annual basis. The information below is from the most recent year.

Standard Direct Labor hours DLH per unit produced 3.00

Practical Capacity in DLH per year 34,000

Variable Overhead Efficiency Variance 7,000 unfavorable

Actual production for the year 10,500 units

Budgeted fixed manufacturing overhead 680,000

Standard direct labor wage rate 20.00 per DLH

Total overhead cost variance for the year 70,000 favorable

Direct labor efficiency variance 14,000 unfavorable

Questions

1. What was the actual number of direct labor hours worked during the year?
2. What was the standard variable overhead rate per DLH during the year?
3. What was the total overhead application rate per direct labor hour during the year?
4. What was the total actual overhead cost incurred during the year?
5. What was the production volume variance for the year? Was it favorable or unfavorable?
6. What was the total over spending variance for the year? Was it favorable or unfavorable?