Overhead Application, Fixed and Variable Overhead Variances Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill requires 0.75 standard hour of labor for completion. The total budgeted overhead was $1,777,500. The total fixed overhead budgeted for the coming year is $832,500. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. Actual results for the year are: Actual production (units) 594,000 Actual variable overhead $928,000 $835,600 Actual direct labor hours (AH) 446,000 Actual fixed overhead Required: 1. Compute the applied fixed overhead. 824,175 2. Compute the fixed overhead spending and volume variances. Enter amounts as positive numbers and select Favorable or Unfavorable. 3,100 Unfavorable Spending variance Volume variance 8,325 Unfavorable 3. Compute the applied variable overhead. 945 X 4. Compute the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable. Spending variance 8,600 Favorable Efficiency variance 1,050 Unfavorable