Chilczuk, S.A., of Gdansk, Poland, is a major producer of 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 companys flexible budget, the following manufacturing overhead costs should be incurred at an activity level of 15,000 labor-hours (the denominator activity level): Variable manufacturing overhead cost $ 30,000 Fixed manufacturing overhead cost 60,000 Total manufacturing overhead cost $ 90,000 During the most recent year, the following operating results were recorded: Activity: Actual labor-hours worked 12,000 Standard labor-hours allowed for output 12,300 Cost: Actual variable manufacturing overhead cost incurred $ 34,800 Actual fixed manufacturing overhead cost incurred $ 48,750 At the end of the year, the companys Manufacturing Overhead account contained the following data: Manufacturing Overhead Actual 83,550 Applied 73,800 9,750 Management would like to determine the cause of the $9,750 underapplied overhead. Required: 1. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. (Round your answers to 2 decimal places.) 2. Show how the $73,800 Applied figure in the Manufacturing Overhead account was computed. (Round your per hour value to 2 decimal places.) 3. Analyze the $9,750 underapplied overhead figure in terms of the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)