8-27 Identifying favourable and unfavourable variances, Purdue Inc, manufactures tires for large auto companies. It uses standard costing and allocates variable and fixed manufacturing overhead based on machine-hours. LO4 Pirst scenario Variable de rate variance, cannot be determoed Required For each independent scenario given, indicate whether each of the manufacturing variances will be favour- able or unfavourable or, in case of insufficient information, indicate "cannot be determined." Variable Overhead Rate Variance Variable Overhead Efficiency Variance Fixed Overhead Rate Variance Fixed Overhead Production- Volume Variance Scenario Production output is 5% more than budgeted, and actual fixed manufacturing overhead costs are 6% more than budgeted Production output is 10% more than budgeted; actual machine-hours are 5% less than budgeted Production output is 8% less than budgeted Actual machine-hours are 15% greater than flexible-budget machine-hours Relative to the flexible budget, actual machine-hours are 10% greater, and actual variable manufacturing over- head costs are 15% greater