to one-twelfth of the annual budget, are as follows: Wilmington Composites, Inc., developed its overhead application rate from the annual budget. The bud- ger is based on an expected total output of 720,000 units requiring 3,600,000 machine hours. The com- able to schedule production uniformly throughout the year. The cost driver for overhead costs is overhead costs for March amounted to $750,000. The actual costs, as compared to the annual budget and A total of 66,000 units requiring 315,000 machine hours were produced during March. Actual $792,000 Problem 11-37 Overhead Variances (LO 11-5) Thin). Acoled over and conta pany machine hours. WILMINGTON COMPOSITES, INC. Annual Budget Per Total Machine Amount Unit Hour Per Monthly Budget Actual Costs Tor March $2,448,000 1,800,000 $ 3.40 2.50 $.68 -50 $204,000 150,000 $222,000 150,000 Variable overhead: Indirect material Indirect labor Fixed overhead: Supervision Utilities Depreciation Total 1,296,000 1,080,000 2,016,000 $8,640,000 1.80 1.50 2.80 $12.00 .36 .30 .56 $2.40 108,000 90,000 168,000 $720.000 102,000 108,000 168,000 $750,000 *** Required: 1. Prepare a schedule showing the following amounts for Wilmington Composites, Inc., for March. a. Applied overhead costs. b. Variable-overhead spending variance. c. Fixed-overhead budget variance. d. Variable-overhead efficiency variance. e. Fixed-overhead volume variance. Where appropriate, be sure to indicate whether each variance is favorable or unfavorable. 2. Draw a graph similar to Exhibit 11-7 to depict the variable-overhead variances. 3. Why does your graph differ from Exhibit 11-7, other than the fact that the numbers differ? ICMA, adapted) Problet want