3. Variances (10 marks) Data Budgeted Actual Output 2,200 2,500 Variable MO/H $8,300 $8,800 Fixed MO/H $8,000 $8,200 Standard hours allowed: 2 direct labor hours per unit Paper A Page 3 , total 4 pages Actual hours used: 4,500 direct labor hours The allocation base for both variable costs and fixed costs is direct labor hours. Required: a. Calculate the standard variable overhead rate b. Calculate the variable overhead variances including spending variances, efficiency variance and flexible variable overhead budget variance c. Calculate the standard fixed overhead rate d. Calculate the fixed overhead variances including spending variances, production volume variances and fixed manufacturing overhead variances