Walkenhorst Companys machining department prepared its 2022 budget based on the following data:

Practical capacity	40,000	units
Standard machine hours per unit	2
Standard variable factory overhead	$ 3.00	per machine hour
Budgeted fixed factory overhead	$ 320,000

The department uses machine hours to apply factory overhead to production. In 2022, the department used 86,600 machine hours and incurred $595,000 in total manufacturing overhead cost to manufacture 42,150 units. Actual fixed overhead cost for the year was $339,000.

Required:

Determine for the year:

1. The fixed, variable, and total factory overhead application rates (per machine hour). (Round your answers to 2 decimal places.)

2. The total flexible budget, for factory overhead cost based on output achieved in 2022.

3. The production volume variance. State whether this variance was favorable (F) or unfavorable (U).

4. The total overhead spending variance. State whether this variance was favorable (F) or unfavorable (U).

5. The overhead efficiency variance. State whether this variance was favorable (F) or unfavorable (U).

6. The variable overhead spending variance and the fixed overhead spending variance. State whether each variance is favorable (F) or unfavorable (U).