Maxwell Company uses a standard cost accounting system and applies production overhead to products on the basis of machine hours. The following information is available for the year just ended:

Standard variable-overhead rate per hour: $2.50

Standard fixed-overhead rate per hour: $4.00

Planned activity during the period: 20,000 machine hours

Actual production: 10,700 finished units

Machine-hour standard: Two completed units per machine hour

Actual variable overhead: $55,440

Actual total overhead: $155,900

Actual machine hours worked: 23,100

Required:

1. Calculate the budgeted fixed overhead for the year.

2. Compute the variable-overhead spending variance.

3. Calculate the companys fixed-overhead volume variance.

4. Did Maxwell spend more or less than anticipated for fixed overhead? How much?

5. Was variable overhead underapplied or overapplied during the year? By how much?

6. On the basis of the data presented, does it appear Maxwell suffered a lengthy strike during the year by its production workers? Briefly explain.