Fargo Corporation reported a $400 favorable price variance for variable overhead and a $4,000 favorable price variance for fixed overhead. The flexible budget had $256,800 variable overhead based on 21,400 direct labor-hours; only 21,200 hours were worked. Total actual overhead was $434,800. The number of estimated hours for computing the fixed overhead application rate totaled 22,000 hours.

Required

a. Prepare a variable overhead analysis like the one in Exhibit 16.10.

b. Prepare a fixed overhead analysis like the one in Exhibit 16.13.