McDormand, Inc., reported a $1,600 unfavorable price variance for variable overhead and a $16,000 unfavorable price variance for fixed overhead. The flexible budget had $1,027,200 variable overhead based on 34,240 direct labor-hours; only 33,920 hours were worked. Total actual overhead was $1,774,400. The number of estimated hours for computing the fixed overhead application rate totaled 35,200 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.