Baird Company makes classic Polish sausage. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the basis of standard direct labor-hours. According to the company's planning budget, the following manufacturing overhead costs should be incurred at an activity level of 30,000 labor-hours (the denominator activity level): During the most recent year, the following operating results were recorded: At the end of the year, the company's Manufacturing Overhead account contained the following data: Management would like to determine the cause of the $31,800 underapplied overhead. Required: 1. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. 2. Show how the $378,000 Applied figure in the Manufacturing Overhead account was computed. 3. Break down the $31,800 underapplied overhead into four components: (1) variable overhead rate variance, (2) variable overhead efficiency variance, (3) fixed overhead budget variance, and (4) fixed overhead volume variance