Chef’s-Best Company is planning to produce 800,000 electric mixers for the coming year. Each mixer requires one-half standard hour of labor for completion. The com- pany uses direct labor hours to assign overhead to products. The total overhead bud- geted for the coming year is $1,120,000, and the standard fixed overhead rate is
$0.55 per unit produced. Actual results for the year follow:
1. Compute the applied fixed overhead.
2. Compute the fixed overhead spending and volume variances.
3. Compute the applied variable overhead.
4. Compute the variable overhead spending and efficiency variances.