Newark Plastics Corporation developed its overhead application rate from the annual budget. The budget is based on an expected total output of 600,000 units requiring 3,000,000 machine hours. The company is able to schedule production uniformly throughout the year. Machine hours is the cost driver for overhead costs. A total of 60,000 units requiring 255,000 machine hours were produced during May. Actual overhead costs for May amounted to $665,000. The actual costs, as compared to the annual budget and to one-twelfth of the annual budget, are as follows:

NEWARK PLASTICS CORPORATION Annual Budget
	Total Amount					Per Unit					Per Machine Hour					Monthly Budget					Actual Costs for May
Variable overhead:
Indirect material		$	1,980,000				$	3.30				$	0.66				$	165,000				$	183,000
Indirect labor			1,380,000					2.30					0.46					115,000					115,000
Fixed overhead:
Supervision			1,200,000					2.00					0.40					100,000					94,000
Utilities			1,140,000					1.90					0.38					95,000					113,000
Depreciation			1,920,000					3.20					0.64					160,000					160,000
Total		$	7,620,000				$	12.70				$	2.54				$	635,000				$	665,000

. Prepare a schedule showing the following amounts for Newark Plastics for May. a. Applied overhead costs. b. Variable-overhead spending variance. c. Fixed-overhead budget variance. d. Variable-overhead efficiency variance. e. Fixed-overhead volume variance.

variable-overhead Spending Variance and Efficiency Variance. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "Projected Overhead" and "Flexible Budget" to 2 decimal places.)

Variable Overhead	Actual Overhead	Spending Variance		Budgeted Overhead at Actual Hours	Efficiency Variance		Flexible Budget (Applied Overhead)
Indirect labor
Indirect material
				$0.00			$0.00
Machine hours
	$0			$0			$0

Fixed-overhead Budget Variance and Volume Variance. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "Applied Overhead" to 2 decimal places.)

Fixed Overhead	Actual Overhead	Budget Variance		Flexible Budget	Volume Variance		Applied Overhead
							$0.00
Machine hours
	$0			$0			$0