What is the fixed overhead application rate per direct labour hour?   

What is the applied fixed overhead for the year?   Compute the fixed overhead spending variance.   

Indicate if the fixed overhead spending variance is Favourable or Unfavourable    Compute the amount of the fixed overhead volume variance.  

Indicate if the fixed overhead volume variance is Favourable or Unfavourable  Compute the variable overhead application rate per direct labour hour.

What is the applied variable overhead for the year?   

Compute the variable overhead spending variance.   

Indicate if the variable overhead spending variance is Favourable or Unfavourable   

 

Katherine Ltd. has the following budgeted and actual information at year end: Budgeted Actual 64,000 65,600 $185,600 $185,200 $288,000 $279,000 85,280 hrs Production (units) Total variable overhead Total fixed overhead Direct labour hours (total) Direct labour hours per unit 0.50 hrs Predetermined plantwide overhead rates are calculated using direct labour hours based on budgeted production. The company uses actual direct labour hours to assign overhead.