QUESTION: Katherine Ltd. has the following budgeted and actual information at year end: Production (units) Total variable overhead Total fixed overhead Direct labour hours (total) Budgeted Actual 64,000 65,600 $185,600 $185,200 $288,000 $279,000 85,280 hrs 0.50 hrs Direct labour hours per unit Predetermined plantwide overhead rates are calculated using direct labour hours based on budgeted production. The company uses actual direct labour hours to assign overhead. Use the above information to answer the following questions. What is the fixed overhead application rate per direct labour hour? What is the applied fixed overhead for the year? Compute the fixed overhead spending variance. HINT: remember the entry rules! Indicate if the fixed overhead spending variance is Favourable (enter F) or Unfavourable (enter UF). HINT: Enter your letter without any additional spaces! Compute the amount of the fixed overhead volume variance. HINT: remember the entry rules! Indicate if the fixed overhead volume variance is Favourable (enter F) or Unfavourable (enter UF). HINT: Enter your letter without any additional spaces! Compute the variable overhead application rate per direct labour hour. HINT: remember the entry rules! What is the applied variable overhead for the year? Compute the variable overhead spending variance. HINT: remember the entry rules! Indicate if the variable overhead spending variance is Favourable (enter F) or Unfavourable (enter UF). HINT: Enter your letter without any additional spaces! Compute the variable overhead efficiency variance. HINT: Remember the entry rules! Indicate if the variable overhead efficiency variance is Favourable (enter F) or Unfavourable (enter UF). HINT: Enter your letter without any additional spaces!