You Have Just Been Hired as the Controller of the Eastern

You have just been hired as the controller of the Eastern Division of Global Manufacturing.Performance records for last year are incomplete,with only the following data available:

$\begin{array}{lr}\text { Variable Overhead Rate } & \$ 3,00 \text { per direct labour hour } \\\text { Budgeted Fixed Overhead } & \$ 84,800 \\\text { Total Actual Overhead Cost } & \$ 262,500 \\\text { Fixed Overhead Budget Variance } & \$ 7,200 \text { unfavourable } \\\text { Variable Overhead Efficiency Variance } & \$ 15,000 \text { unfavourable } \\\text { Actual Direct Labour Hours Worked } & 55,000 \text { direct labour hours } \\\text { Denominator Activity Level } & 53,000 \text { direct labour hours } \\\text { Standard Hours per Unit } & 2 \text { direct labour hours }\end{array}$

Required:

Answer each of the questions below and provide a summary of the overhead variances to explain the total over-applied or under-applied overhead. It may be helpful to prepare the variance analysis diagrams for both the variable and fixed overhead variances. Budgeted fixed overhead rate, actual fixed overhead, actual variable overhead, variable overhead spending variance, variable overhead applied, standard hours allowed, actual units produced, fixed overhead applied, fixed overhead volume variance, and the amount of over or under-applied overhead.