2- Prepare an analysis of the overhead cost variances for the vearjust completed and in so doing answer the following questions: {a} What is the total overhead exihte-budget variance for the period? {b} What is the overhead volume variance for the period? {c} What is the total overhead cost variance for the year? Indicate whether each of the above variances is favorable {F} or unfavorable {U}. {For all requirements, round your answers to the nearest whole dollar amount} . The variable overhead application rate (per letter of credit issued) . The insurance cost percentage _ The xed overhead application rate {per letter of credit issued} . Total overhead exiblebudget variance for the period . The overhead volume variance for the period . The totai ovedread cost variance for the year Acme Financial issues letters of credit to importers for overseas purchases. The company charges a nonrefundable application fee of $4,000 and, on approval, an additional service fee of 2.0% of the amount of credit requested. The company's budget for the yearjust completed included xed expenses for ofce salaries and wages of $685,200, leasing ofce space and equipment of $59,000, and utilities and other operating expenses of $11,000. In addition, the budget also included variable expenses for supplies and other variable overhead costs of $1,280,000. The company estimated these variable overhead costs to be $2,000 for each letter of credit approved and issued. The company approves, on average, 75% of the applications it receives. During the year, the company received 600 requests and approved 70% of them. The total variable overhead was 10.0% higher than the standard amount applied; the total xed expenses were 5.0% lower than the amount budgeted. In addition to these expenses, the company paid a $270,000 insurance premium for the letters of credit issued. The insurance premium is 1.0% of the amount of credits issued in U.S. dollars. The actual amount of credit issued often differs from the amount requested due to fluctuations in exchange rates and variations in the amount shipped versus the amount ordered by importers. The strength of the dollar during the year decreased the insurance premium by 10.0%. Required: '1. Calculate {or determine} the following budgeted overhead costs for the year: {a} the variable overhead application rate {per letter of credit issued) [bl the insurance cost percentage [c] the fixed overhead application rate [per letter of credit issued}