Bonus Question (6 bonus points possible) Layt Clock Company has developed the following flexible budget for its overhead costs. The standard hours allowed per unit is 1.2 hours. Manufacturing overhead at Layt is applied to production on the basis of standard machine-hours: Budget Information Machine Hours Clocks produced Variable overhead cost per 26,400 22,000 machine hour (standard) 5.90 Fixed overhead cost per unit per machine hours (standard) $6.48 Total Fixed overhead cost $171,072 The actual results for the year were as follows: Number of clocks produced Machine-hours incurred Variable overhead cost Fixed overhead cost 21,500 24,940 145,899 $170,540 Required: 1. 2. 3. 4. Compute Variable Overhead Rate Variance. Compute Variable Overhead Efficiency Variance. Compute Fixed Overhead Budget Variance Compute Fixed Overhead Volume Variance