Calculate overhead variances and list reasons for unfavourable variances. E12.27 (LO 3, 4) The following information was taken from the annual manufacturing overhead cost budget of Fernetti Company: During the year, 4,000 units were produced, 16,100 hours were worked, and the actual manufacturing overhead was $55,000. Actual fixed manufacturing overhead costs equalled the budgeted fixed manufacturing overhead costs. Overhead is applied based on direct labour hours. Instructions a. Calculate the total, fixed, and variable predetermined manufacturing overhead rates. b. Calculate the total, budget, and volume overhead variances. c. Briefly interpret the overhead budget and volume variances calculated in part (b)