Question: a. Determine the overhead application rate. 25.70 b. Determine how much overhead was applied to production. 114365 c. Calculate the controllable overhead variance and the

a. Determine the overhead application rate.

25.70

b. Determine how much overhead was applied to production.

114365

c. Calculate the controllable overhead variance and the overhead volume variance.

- 19535

- ?

d. Decide which overhead variances should be investigated.

e. Discuss causes of the overhead variances. What can management do to improve its performance next month?

One non-custom model is called Luxury Base Frame Normal production is 1.000 units. Each unit has a direct labor hour standard of 5 hours. Overhead is applied to production based on standard direct labor hours. During the most recent month, only 890 units were produced; 4.450 direct labor hours were allowed for standard production, but only 4.000 hours were used. Standard and actual overhead costs were as follows

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