Presented here are the original overhead budget and the actual costs incurred during April for Piccolo, Inc. Piccolos managers relate overhead to direct labor hours for planning, control, and product costing purposes. The original budget is based on budgeted production of 15,600 units in 5,200 standard direct labor hours. Actual production of 16,800 units required 6,200 actual direct labor hours.

Original Budget				Actual Costs
Variable overhead		$	18,720			$	21,320
Fixed overhead		$	34,320				35,420

A. Calculate the flexed budget allowances for variable and fixed overhead for April.

Variable Flex Budget =

Fixed Flex Budget=

B. Calculate the direct labor efficiency variance for April expressed in terms of direct labor hours. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

Direct labor efficiency variance =

C. Calculate the predetermined overhead application rate for both variable and fixed overhead for April.(Round your answers to 2 decimal places.)

Predetermined overhead application rate per hour (variable)=

Predetermined overhead application rate per hour (fixed)=

D. Calculate the fixed and variable overhead applied to production during April if overhead is applied on the basis of standard hours allowed for actual production achieved.

Overhead Applied (variable)=

Overhead Applied (fixed)=

E. Calculate the fixed overhead budget and volume variances for April. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

Fixed Overhead Budget Variance=

Fixed Overhead Volume Variance=

F. Calculate the over- or underapplied fixed overhead for April.

Fixed Overhead =