Container Corp The manufacturing division produces shipping containers. The planned activity for the current year is as follows: Budget $ 10,000 50,000 60,000 120,000 Variable overhead Power Supplies and materials Maintenance Total VOH Fixed overhead Supervisory salaries Equipment depreciation Facilities costs Total FOH 75,000 25,000 60,000 160,000 Production Units Machine Hours per unit Direct Labour Hours per unit Quantity 10,000 0.25 MH 0.40 DLH Variable Overhead is applied to units produced based on Machine Hours. Fixed Overhead is applied to units produced based on Direct Labour Hours. Required 1. Compute the predetermined overhead rates for Variable and Fixed Overhead. Round the rates to 4 decimal places. Required 1. Compute the predetermined overhead rates for Variable and Fixed Overhead. Round the rates to 4 decimal places. Actual Results for the year are as follows: Quantity Variable Overheads Fixed overheads Production Units Actual $ 123,600 156,800 9,500 2. Compute the total variances for variable overhead and fixed overhead, Actual vs Standard (applied). Identify if each overhead variance is Favourable (F) or Unfavourable (U) 3. Compute the budget variance for fixed overhead. The production manager's explanation for the variable overhead variances is that a critical piece of equipment failed and that excluding that unexpected event he would have been within budget for his variable overheads. The equipment failure resulted in additional maintenance costs of $5,000. The equipment failure downtime reduced production by 400 units. 4. Is the production manager correct? Prepare an analysis to restate the Variable overhead costs and the variance if the equipment failure had not occurred. Actual $ Standard $ Variance Original Adjustment Revised Amount