Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLLs standard cost card follows:

Standard QuantityStandard RateStandard Unit CostVariable manufacturing overhead0.6$0.80$0.48

During August, LLL had the following actual results:

Units produced and sold 24,000Actual variable overhead$9,490Actual direct labor hours 16,000

Lamp Light Limited (LLL) calculates a fixed overhead rate based on budgeted fixed overhead of $77,000 and budgeted production of 22,000 units. Actual results were as follows:

Number of units produced and sold 24,000Actual fixed overhead$75,000

Required: 1. Calculate the fixed overhead rate based on budgeted production for LLL.

2. Calculate the fixed overhead spending variance for LLL.

3. Calculate the fixed overhead volume variance for LLL.

4. Calculate the over- or underapplied fixed overhead for LLL.