ces 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 25,000 labor-hours (the denominator activity level): Variable manufacturing overhead cost Fixed manufacturing overhead cost Total manufacturing overhead cost $112,500 162,500 $275,000 During the most recent year, the following operating results were recorded Activity: Actual labor-hours worked Standard labor-hours allowed for the actual output Cost: Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred 22,000 23,000 $129,000 $143,750 At the end of the year, the company's Manufacturing Overhead account contained the following data: Manufacturing Overhead Debitt Credit Actual 271,550 Applied 253,000 20,150 Management would like to determine the cause of the $20.550 under applied overhead. Required: 1. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements 2. Show how the $253,000 Applied figure in the Manufacturing Overhead account was computed. 3. Break down the $20,550 underapplied overhead into four components (1) variable overhead rate variance. (2) variable overhead. efficiency variance. (3) fixed overhead budget variance, and (4) foxed overhead volume variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3