[10 Marks] Sucher Company uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of machine hours. The company's condensed flexible budget for manufacturing overhead is given below: Per Machine Hour Machine Hours $3 Variable overhead costs Fixed overhead costs Total overhead costs 20,000 $60,000 300,000 $360,000 25,000 $75,000 300,000 $375,000 30,000 $90,000 300,000 $390,000 The denominator level of activity is 30,000 machine hours. Standards call for 2.5 machine hours per unit of output. Actual activity and manufacturing overhead costs for the year are given below: 12.800 units 31,600 machine hours Units produced Machine hours used Overhead costs incurred: Variable costs Fixed costs $96,000 $297,000 Required: (YOU MUST SHOW ALL OF YOUR WORK FOR FULL MARKS) a) What are the standard hours allowed for the output? b) What was the variable overhead spending variance? Is it favourable or unfavourable? c) What was the variable overhead efficiency variance? Is it favourable or unfavourable? ? d) What was the fixed overhead budget variance? Is it favourable or unfavourable? e) What was the fixed overhead volume variance? Is it favourable or unfavourable? f) In a standard costing system, if factory overhead in total is underapplied, then the overhead variances will be unfavourable. Is this correct? Why or why not? Answer in no more than three sentences