Computing overhead and analyzing volume and spending variances. Selected data for the Yee Manufacturing Company for the year 19X6 folHow:

Overhead was applied on the basis of direct labor hours.
Instructions 1. Compute the overhead application rate.
2. Compute the applied overhead for the year.
3. Compute the total overapplied or underapplied overhead for the year.
4. Analyze the total overapplied or underapplied overhead into a volume variance and a spending variance.

Direct Labor Hours Manufacturing Overhead Fixed Variable Total Overhead Budgeted for Year 260,000 $ 585,000 1,092,000 $1,677,000 Actual for Year 248,300 $ 578,400 1,039,940 $1,618,340