Centre Black Company planned to produce 40,000 units of product and work at the 100,000 direct labour hours level of activity for 2022. Manufacturing overhead at this level of activity and the predetermined overhead rate is as follows: Predetermined Overhead Rate per Direct Labour Hour Variable manufacturing overhead $600,000 $6 Fixed manufacturing overhead 300,000 3 Total manufacturing overhead $900,000 $9 At the end of 2022, 44,000 units were actually produced and 107,400 direct labour hours were actually worked. Total actual manufacturing overhead costs were $950,000, of which $610,000 was variable. Instructions Calculate the following variances and indicate whether they are favourable or unfavourable: a) Variable overhead budget variance. b) Fixed overhead volume variance.