Newark Plastics Corporation developed its overhead application rate from the annual budget. The budget is based on an expected total output of 708,000 units requiring 3,540,000 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 69,000 units requiring 300,900 machine hours were produced during May. Actual overhead costs for May amounted to $1,044,800. 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 $ 2,973,600 $ 4.20 $ 0.84 $ 247,800 $ 265,800 Indirect labor 2,265,600 3.20 0.64 188,800 188,800 Fixed overhead: Supervision 2,053,200 2.90 0.58 171,100 165,100 Utilities 1,982,400 2.80 0.56 165,200 183,200 Depreciation 2,902,800 4.10 0.82 241,900 241,900 Total $ 12,177,600 $ 17.20 $ 3.44 $ 1,014,800 $ 1,044,800

Required: 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.