Company uses standard costing. The company prepared its static budget for 2018 at 2,500,000 machine hours for the year. Total budgeted overhead cost is $33,500,000. The variable overhead rate is $11 per machine hour ($22 per unit). Actual result for 2018 as follow:

Machine-hours	2,400,000	hours
Output	1,230,000	units
Variable overhead	$27,600,000
Fixed overhead rate variance	$1,350,000	U

1.	Calculate for the fixed overhead:
	a.	Budgeted amount.
	b.	Budgeted cost per machine-hour.
	c.	Actual cost.
	d.	Production-volume variance.
2.	Calculate the variable overhead rate variance and the variable overhead efficiency variance.