5) Redtop Co. uses a standard cost system and exible budgets. The following flexible budget was prepared at the 80% operating level for the year: Standard direct labor hours (DLHs) 28,800 Budgeted variable factory overhead cost $149,760 Total factory overhead rate per DLH However, for purposes of calculating the fixed overhead application rate, the company defined the denominator volume as the 90% capacity level. The standard calls for four DLHs per unit manufactured. During the year, Redtop worked 33,600 DLHs to manufacture 8,500 units. The actual factory overhead cost incurred was $12,000 greater than the flexible-budget amount for the units produced, of which $5,000 was due to fixed factory overhead. Required: Calculate (and provide supporting details for) each of the following variances: 1. The standard variable overhead application rate. 2. The variable overhead efficiency variance. 3. The total factory overhead spending variance. 4. The factory overhead production volume variance. 5. The variable overhead spending variance. 6. Provide a description for each of the variances you calculated in requirements 1 through 5. 6) The variances discussed in Chapter 15 (for manufacturing overhead) are all components of a short- term financial control system. These variances are calculated using standard manufacturing costs and flexible budgets. As was argued in the text (both in Chapter 15 and elsewhere) a financial control system is but part of a more comprehensive management accounting and control system. Required: 1. What are the primary limitations of shortrun financial control measures? 2. How can a shortrun financial control system be expanded to become a more comprehensive management accounting and control system? Discuss, in at least some detail, how and why you would expand the system in an attempt to provide management with more useful information