Exercise 11-37 Overhead Application, Fixed and Variable Overhead Variances Chesley Company is planning to produce 2,600,000 power drills for the coming year The company uses direct labor hours to assign overhead to products. Each drill requires 0.6 standard hour of labor Objective 2, 3 for completion. The total budgeted overhead was $1,981,200. The total fixed overhead budgeted for the coming year i $i,526,000. Predetermined overhead rates are calculated using expected producti labor hours. Actual rcsults for the year are: Actual production (units) Actual direct labor hours (AH) 2,560,000 Actual voriable overhead 644,100 1,535,400 Actual fixed overhead $1,330,000 Required: I. Compute the applied fixed overhead. 2. Compute the fixed overhead spending and volume variances. 3. Compute the applied variable overhead