Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

Budgeted variable overhead cost per direct labor-hour	$	4.00
Total budgeted fixed overhead cost per year	$	592,856
Budgeted direct labor-hours (denominator level of activity)		59,286
Actual direct labor-hours		83,000
Standard direct labor-hours allowed for the actual output		80,000

Required:

1. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fixed overhead and the total budgeted variable overhead in the numerator of your rate. (Round your answer to the nearest whole dollar amount.)

2. Compute the amount of overhead that would be applied to the output of the period. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

1.	Predetermined overhead rate		per DLH
2.	Overhead applied

Selected operating information on three different companies for a recent year is given below:

	Company
	A	B	C
Full-capacity machine-hours	28,000	17,000	18,000
Budgeted machine-hours*	27,000	16,200	18,000
Actual machine-hours	27,000	16,700	17,000
Standard machine-hours allowed for actual production	27,500	15,700	18,000

*Denominator activity for computing the predetermined overhead rate.

Required:

For each company, state whether the volume variance would be favorable or unfavorable. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.))

Company A
Company B
Company C