William is working with the controller of his company on the year-end financial statements. Earlier in the year, a long-time employee of the accounting department retired. The employee failed to leave any notes regarding her work before she left. William and the controller can see that $565,175 of manufacturing overhead has been applied throughout the year. Further, they can see that the company has incurred $63,425 of direct labor cost and $66,518 of direct materials. The company’s pay rate for direct labor is $12.30 per hour. If the retired employee applied overhead based on direct labor hours, what rate did she use to apply overhead (if necessary, round your answer)?

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget.the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead.a total of 119,300 units, using 478,000 direct labor hours, were produced during the year.actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.