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 $16,000$ labor$-$hours $($the denominator activity level$)$:

Variable manufacturing overhead cost $ $36,000$

Fixed manufacturing overhead cost $68,000$

Total manufacturing overhead cost $ $104,000$

During the most recent year, the following operating results were recorded:

Activity:

Actual labor$-$hours worked $13,000$

Standard labor$-$hours allowed for the actual output $14,000$

Cost:

Actual variable manufacturing overhead cost incurred $ $41,600$

Actual fixed manufacturing overhead cost incurred $ $56,000$

At the end of the year, the company$$s Manufacturing Overhead account contained the following data:

Manufacturing Overhead

Debit Credit

Actual $97,600$ Applied $91,000$

$6,600$

Management would like to determine the cause of the $$6,600$ underapplied overhead.

Required:

$1.$ Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements.

$2.$ Show how the $$91,000$ Applied figure in the Manufacturing Overhead account was computed.

Show how the $$91,000$ Applied figure in the Manufacturing Overhead account was computed. $($Round your per hour value

to $2$ decimal places.$)$

$3.$ Break down the $$6,600$ 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.