Problem 3 1 Overhead application rate account, b. Post General Journal Voucher 2 Overhead applied (9.3A) Compute overhead and analyze volume and spending variances. (Objs.4,5,7). Se lected data for the Beverly Hills Manufacturing Company for the year 2006 follow: Actual for Year 248,300 3 Over or under applied OH: Budgeted for Year 260,000 4 Volume Variance Fixed Overhead applied Direct Labor Hours Manufacturing Overhead Fixed Variable Total Overhead Fixed Overhead budgeted $ 578,400 1,039,940 $1,618,340 $ 585,000 1,092,000 $1,677,000 Volume variance U/F Spending variance Actual Overhead for the year Budgeted Overhead for hours worked Fixed Variable Total Spending variance U/F Overhead is 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. Total variance U/F