See Clear Company manufactures clear plastic CD cases. It applies variable overhead based on the number of machine hours used. Information regarding See Clears overhead for the month of December follows:

	Standard Quantity	Standard Rate	Standard Unit Cost
Variable manufacturing overhead	0.6 machine hours per case	$1.40 per machine hour	$ 0.84

During December, See Clear had the following actual results:

Number of units produced and sold		106,000
Actual variable overhead cost	$	80,000
Actual machine hours		63,000

Required: Compute See Clears variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Variable Overhead Rate Variance
Variable Overhead Efficiency Variance
Variable Overhead Spending Variance

See Clear Company calculates a fixed overhead rate based on budgeted fixed overhead of $243,600 and budgeted production of 420,000 units. Actual results were as follows:

Number of units produced and sold		417,000
Actual fixed overhead	$	251,500

Required:

1. Calculate the fixed overhead rate based on budgeted production for See Clear. (Round your answer to 2 decimal places.)

2. Calculate the fixed overhead spending variance for See Clear.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

3. Calculate the fixed overhead volume variance for See Clear.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

4. Calculate the over- or underapplied fixed overhead for See Clear.