Newark Plastics Corporation developed its overhead application rate from the annual budget. The budget is based on an expected total output of 636,000 units requiring 3,180,000 machine hours. The company is able to schedule production uniformly throughout the year. Machine hours is the cost driver for overhead costs. A total of 58,000 units requiring 270,300 machine hours were produced during May. Actual overhead costs for May amounted to $782,600. The actual costs, as compared to the annual budget and to one-twelfth of the annual budget, are as follows: NEWARK PLASTICS CORPORATION Annual Budget Total Amount Per Unit Per Machine Hour Monthly Budget Actual Costs for May Variable overhead: Indirect material $ 2,289,600 $ 3.60 $ 0.72 $ 190,800 $ 208,800 Indirect labor 1,653,600 2.60 0.52 137,800 137,800 Fixed overhead: Supervision 1,462,800 2.30 0.46 121,900 115,900 Utilities 1,399,200 2.20 0.44 116,600 134,600 Depreciation 2,226,000 3.50 0.70 185,500 185,500 Total $ 9,031,200 $ 14.20 $ 2.84 $ 752,600 $ 782,600 Required: 1. Prepare a schedule showing the following amounts for Newark Plastics for May. a. Applied overhead costs. b. Variable-overhead spending variance. c. Fixed-overhead budget variance. d. Variable-overhead efficiency variance. e. Fixed-overhead volume variance.