Overhead Application, Fixed and Variable Overhead VariancesKojima Company is planning to produce $2,500,000$ power drills for the coming year. The company uses direct labour hours to assign overhead to products. Each drill requires $0\mathrm{.}6$ standard hour of labour for completion. The total budgeted overhead was $$1,982,000.$ The total fixed overhead budgeted for the coming year is $$1,326,500.$ Predetermined overhead rates are calculated using expected production, measured in direct labour hours. Actual results for the year are:Actual production $($units$)2,550,000$Actual direct labour hours $($AH$)1,535,700$Actual variable overhead $$643,000$Actual fixed overhead $$1,370,000$Required:Round the fixed and variable overhead rates to two decimal places and use in subsequent computations. If required, round final answers to the nearest dollar$\mathrm{.}1.$ Compute the applied fixed overhead.$fill in the blank $12.$ Compute the fixed overhead spending and volume variances.Spending:fill in the blank $2$Volume:fill in the blank $43.$ Compute the applied variable overhead.$fill in the blank $64.$ Compute the variable overhead spending and efficiency variances.Spending:fill in the blank $7$Efficiency:fill in the blank $9$