Exercise 10A-5 (Algo) Using Fixed Overhead Variances [LO10-4] The standard cost card for the single product manufactured by Cutter, Incorporated, is given below: Manufacturing overhead is applied to production on the basis of standard direct labor-hours. During the year, the company worked 9,800 hours and manufactured 12,000 units of product. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below: Required: 1. What were the standard hours allowed for the year's production? 2. What was the amount of budgeted fixed overhead cost for the year? 3. What was the fixed overhead budget variance for the year? (indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance). Input all amounts as positive values.) 4. What denominator activity level did the company use in setting the predetermined overhead rate for the year