COMPLETE ONLY 3 and 4

OBJECTIVE Exercise 11-19 Overhead Application, Fixed and Variable Overhead Variances Kojima Company is planning to produce 600,000 power drills for the coming year. The company uses direct labour hours to assign overhead to products. Each drill requires 0.75 standard hours of labour for completion. The total budgeted overhead was $1,777,500. The total fixed overhead budgeted for the coming year is $832,500. Predetermined overhead rates are calculated using expected production, measured in direct labour hours. Actual results for the year are: Actual production (units) 594,000 Actual direct labour hours 446,000 Actual variable overhead 5928,000 Actual fixed overhead 5835,000 Required: 1. Compute the applied fixed overhead. 2. Compute the fixed overhead spending and volume variances. 3. Compute the applied variable overhead. 4. Compute the variable overhead spending and efficiency variances