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# 2. Compute the fixed overhead spendllg Exercise 10-59 Overhead Application, Fixed and Variable Ov... 2. Compute the fixed overhead spendllg Exercise 10-59 Overhead Application, Fixed and Variable Ove Zspol Company is planning to produce 600,000 power drills for the coming vo .Computt uit Overhead Variance coming year. The compan 0.75 standard hou uses direct labor hours to assign overhead to products. Each drill requi of labor for completion. The total budgeted overhead was \$1,777,500. The budgeted for the coming year is \$832,500. Predetermined overhead ra expected production, measured in direct labor hours. Actual results for ead was \$1.777.500. The total fixed overh rates are calculated ed the year are: Actual variable overhead \$928,000 \$835,600 594,000 Actual production (units) Actual direce labor hours (a)446,000 Actual fixed overhead Required: 1. Compute the applied fixed overhead. 2. Compute the fixed overhead spending and volume variances. 3. Compute the applied variable overheac. 4. Compute the variable overhead spending and efficiency variances.

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