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 35,000 labor-hours (the denominator activity level): Variable manufacturing overhead cost $87.500 Fixed manufacturing overhead cost 210.000 Total manufacturing overhead cost 297,500 During the most recent year, the following operating results were recorded: Activity: Actual labor-hours worked 30,000 Standard labor-hours allowed for the actual output 32,000 Cost: Actual variable manufacturing overhead cost incurred $78,000 Actual fixed manufacturing overhead cost incurred $209,400 At the end of the year, the company's Manufacturing Overhead account contained the following data: Manufacturing Overhead Actual 287,000 Applied 272,000 15,400 Management would like to determine the cause of the $15,400 underapplied overhead. a. (2 points) Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. b. (2 points) Show how the $272,000 Applied figure in the Manufacturing Overhead account was computed c. (4 points) Breakdown the $15,400 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