(B) Determine how much overhead was applied to production? Applied Overhead _____$

(C) calculate the total overhead variance, and volume variances.

Total Overhead Variance _________

Controllable Variance ________

Volume Variance ________

Ana Carillo and Associates is a medium-sized company located near a large metropolitan area in the Midwest. The company manufactures cabinets of mahogany, oak, and other fine woods for use in expensive homes, restaurants, and hotels. Although some of the work is custom, many of the cabinets are a standard size One such non-custom model is called Luxury Base Frame. Normal production is 960 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 860 units were produced; 4,300 direct labor hours were allowed for standard production, but only 3,800 hours were used. Standard and actual overhead costs were as follows. Standard Actual (960 units) (860 units) Indirect materials Indirect labor (Fixed) Manufacturing supervisors salaries (Fixed) Manufacturing office employees salaries (Fixed) Engineering costs Computer costs Electricity (Fixed) Manufacturing building depreciation (Fixed) Machinery depreciation (Fixed) Trucks and forklift depreciation Small tools (Fixed) Insurance (Fixed) Property taxes $ 11,500 41,300 21,600 12,500 26,000 9,600 2,400 7,700 2,900 1,400 670 480 290 $138,340 $ 11,800 49,000 21,200 12,000 24,000 9,600 2,400 7,700 2,900 1,400 1,350 480 290 $144,120 Total Determine the overhead application rate. (Round answer to 2 decimal places, e.g. 15.75.) Overhead application rate per direct labor hour