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 12,000 labor-hours (the denominator activity level): Variable manufacturing overhead coat Fixed manufacturing overhead cost Total manufacturing overhead cost $ 15,000 39,000 $ 54,000 During the most recent year, the following operating results were recorded: Activity: Natut labor-hours worked Standard labor-hours allowed for the actual output Cout Actual variable manufacturing overhead coat incurred Actual fixed manufacturing overhead cost incurred 9.000 10,000 18,000 $ 30,000 At the end of the year, the company's Manufacturing Overhead account contained the following dota: makufacturing overhead Actual 40,000 Applied 3.000 65.000 Management would like to determine the cause of the $3.000 underapplied overhead. Required: 1. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. 2. Show how the $45,000 Applied figure in the Manufacturing Overhead account was computed. 3. Breakdown the $3,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Predetermined overhead rato Variable element Fixed element per hour per hour per hour Required Required 2 >